Trump’s World Liberty Financial Launches Points Program for Staking and Trading USD1 Stablecoin

World Liberty Financial, a decentralized finance (DeFi) project backed by President Donald Trump and his sons, has announced the launch of a loyalty points program for its USD1 stablecoin, aiming to incentivize user engagement and drive adoption. The initiative, revealed on August 7, 2025, draws inspiration from traditional loyalty programs like airline miles and hotel rewards, marking a significant step in rewarding users for their contributions to the USD1 ecosystem. As stablecoins continue to play a pivotal role in crypto trading, payments, and DeFi, this program seeks to address the lack of direct rewards for users, positioning USD1 as a competitive player in the growing stablecoin market.

The USD1 loyalty points program will initially roll out with select crypto exchange partners, including Gate.io, HTX Global, and Bitget, with each platform setting its own rules for earning points. Users can accumulate points through activities such as holding USD1 balances, trading USD1 pairs, staking USD1 for yield, while also using it in approved DeFi protocols. Engagement with the WLFI mobile app is also expected to offer point-earning opportunities, though all the specific details on point calculation methods and redemption perks including token details and staking details remain forthcoming. The program’s structure aims to foster user participation and enhance the real-world utility of USD1, which is fully backed by U.S. dollar deposits, short-term U.S. government treasuries, and cash equivalents.

Strategic Move Amid Evolving Regulatory Landscape

The announcement comes at a time of increasing regulatory clarity for stablecoins and staking activities in the U.S. On August 5, 2025, the Securities and Exchange Commission (SEC) issued guidance stating that certain liquid staking activities do not involve securities, exempting participants from registering under securities laws unless the staked assets are part of an investment contract. Liquid staking allows users to stake tokens on proof-of-stake blockchains like Ethereum or Binance Smart Chain while maintaining liquidity through derivative tokens, known as liquid staking tokens (LSTs). While it remains unclear whether the USD1 stablecoin will introduce such tokens for its loyalty program, the SEC’s guidance could provide a favorable environment for WLFI to expand its staking-related offerings without regulatory hurdles.

World Liberty Financial’s USD1, launched in April 2025, has already achieved significant traction, with a market cap of $2.17 billion, although it hasn’t faired as well as some other stablecoins since the GENIUS Act was signed into law. The project’s focus on institutional-grade custody through BitGo and zero-fee minting and redemption sets it apart from competitors like USDT and USDC. The loyalty program is poised to further boost adoption by offering tangible rewards, such as discounted trading fees, VIP access to WLFI events, or early access to new DeFi tools, according to posts on X. The initiative aligns with WLFI’s broader mission to democratize access to DeFi, as emphasized by co-founder Zach Witkoff, who highlighted USD1’s role in providing secure, seamless cross-border transactions for both retail and institutional users.

The loyalty program’s phased rollout, starting with select crypto exchange partners, reflects a strategic approach to building a robust ecosystem around USD1. While the full details are yet to be disclosed, the program’s potential to reward user activity could drive further growth in USD1’s adoption, especially as stablecoins continue to dominate the crypto economy with a total market cap exceeding $250 billion. The Trump family’s involvement, while raising some concerns about conflicts of interest, has also drawn significant attention to the project, amplified by their vocal support for stablecoins as a tool to reinforce the U.S. dollar’s global dominance.