HTX to Delist Trump-Linked Stablecoin USD1 After Issuer WLFI Freezes On-Chain Addresses

World Liberty Financial, the crypto venture backed by U.S. President Donald Trump’s family, has positioned USD1 as a fully reserved, dollar-pegged token for payments and institutional finance. BitGo manages the reserves and handles minting and redemptions. With a market capitalization of about $4.05 billion, USD1 ranks as the world’s sixth-largest stablecoin, making its expansion onto institutional blockchain infrastructure significant for broader adoption.

World Liberty Financial said on Aug. 25, 2026, that USD1 had been issued natively on Canton Network, a blockchain built for regulated financial markets. Institutions can use the token as the cash leg for settling tokenized real-world assets, as collateral for derivatives and in institutional lending transactions. The integration is designed to pair dollar settlement with Canton’s privacy controls and atomic settlement capabilities, reducing friction when assets and payments move onchain.

World Liberty Financial (WLFI), a crypto project backed by the Trump family, issues USD1, a U.S. dollar stablecoin designed to maintain a value of $1 per token. Custodian BitGo currently facilitates issuance and redemptions. An Office of the Comptroller of the Currency (OCC) national trust bank charter would allow WLFI to handle reserves, settlement and fund flows itself, making the review a focus of financial-regulatory and conflict-of-interest concerns.

As of July 20, 2026, market reports indicated that the OCC was set to approve WLFI's charter application. A former OCC official said regulators would struggle to find grounds for rejection under existing review standards. Approval would allow WLFI to dispense with intermediaries such as BitGo. Democratic senators and banking industry groups oppose the application, questioning whether the Trump family's ties to federal regulatory decisions create a conflict of interest. The OCC has yet to formally announce an approval date or the charter's conditions.

World Liberty Financial, or WLFI, is a DeFi project backed by the Trump family whose USD1 stablecoin aims to maintain a peg of $1 per token. The close association between a political family’s brand and crypto finance has drawn scrutiny of account security, reserve transparency and market confidence.

The project recently faced a coordinated attack in which hackers compromised a founder’s account to spread panic while taking short positions, briefly pushing USD1 down to $0.9942. The project said funds were safe and its stabilization mechanism was functioning normally. As of July 20, 2026, USD1 had regained its peg, though the WLFI governance token remained under downward pressure.

USD1 is a U.S. dollar stablecoin issued by Trump family-backed World Liberty Financial (WLFI) in partnership with custodian BitGo. It is backed 1:1 by U.S. dollar deposits, short-term U.S. Treasuries and cash equivalents, with Crowe reviewing its reserves monthly. The token has a market capitalization of about $5 billion, making the depeg a test of market confidence in its reserves and redemption mechanism.

On February 23, 2026, WLFI said the X accounts of several co-founders had been compromised. The attackers also paid to spread fear, uncertainty and doubt, or FUD, while heavily shorting the WLFI token. USD1 briefly fell to $0.9802 on Binance before returning close to $1 within about 30 minutes. The team issued two clarifications that its contracts, wallets and reserves had not been hacked and that 1:1 minting and redemption continued to operate normally.

World Liberty Financial is a crypto-finance company backed by U.S. President Donald Trump and his sons. Its USD1 stablecoin is fully backed 1:1 by U.S. dollar assets and uses minting and redemption mechanisms to maintain its $1 price. Stablecoins are an important dollar substitute for crypto trading and fund transfers, and even a brief depeg can test reserve transparency and market confidence.

World Liberty Financial said on X on February 23, 2026, that hackers targeted the accounts of several WLFI co-founders, short sellers built large positions and paid influencers spread panic. The company said WLFI fell about 7% at one point and was trading at $0.1128 when the report was published. USD1 dropped to about $0.994 before recovering to above $0.999.