Trump's WLFI teams up with BONK to take over Solana, challenging the dominance of USDC.

Supported by U.S. President Trump, World Liberty Financial (WLFI) announced a major expansion on the Solana blockchain through collaborations with meme coin platform BONK and decentralized exchange Raydium. This partnership marks a strategic move to integrate the USD1 stablecoin into Solana’s rapidly growing DeFi ecosystem.

Trump’s WLFI Declares “Rebuilding” the Solana Ecosystem

(Source: DefiLlama)

In a post on X (formerly Twitter), the project stated it is working with Bonk and Raydium to “rebuild the Solana ecosystem,” aiming to promote the adoption of USD1 tokens. The statement read: “Actions speak louder than words. As the leading USD1 community on Solana, we’ve accumulated approximately $1 billion in strategic reserves. This is just the first step to making USD1 a home for Solana traders and content creators.”

The use of “rebuilding” is highly ambitious, implying that WLFI isn’t just entering the Solana ecosystem but intends to fundamentally alter its stablecoin landscape. This partnership will enable USD1 to directly compete with Circle’s USDC, which currently dominates Solana’s stablecoin market. According to DeFiLlama, USDC accounts for over $9 billion of the $14.12 billion total stablecoin supply on Solana, holding more than 63% market share.

Through integration with Bonk and Raydium, WLFI aims to embed USD1 into the infrastructure of Solana’s DeFi activities, enhancing liquidity and community engagement. Bonk is one of the most popular memecoins on Solana, with a large community and highly active traders. Raydium is one of Solana’s largest decentralized exchanges, providing automated market maker (AMM) services and serving as a core infrastructure component of the Solana DeFi ecosystem.

This collaboration will bring USD1 into Bonk.fun’s memecoin issuance platform and Raydium’s liquidity pools. These integrations will facilitate the launch of new USD1 trading pairs and tokens, while offering millions of dollars in promotional rewards for users providing liquidity or trading USD1 pairs. The company states its goal is to leverage Solana’s low transaction costs and high speed to make USD1 the primary stablecoin alternative for Solana users.

USD1’s Rapid Rise Challenges USDC’s Dominance

(Source: CoinGecko)

Since its launch in April 2025, USD1 has experienced rapid growth, reaching a circulation of $2.91 billion by November, making it one of the fastest-growing stablecoins this year. Only Tether’s USDT, Circle’s USDC, MakerDAO’s DAI, and Sky’s USDS have larger market caps. The token is issued by World Liberty Financial, custody is handled by BitGo, and it is backed 1:1 by U.S. government money market funds and other cash equivalents.

Reaching $2.91 billion in less than seven months is an extraordinary growth rate in stablecoin history. For comparison, USDC took over two years to reach a similar size, and DAI’s growth has been years in the making. USD1’s rapid rise is attributed to Trump’s political influence and WLFI’s aggressive marketing strategies.

WLFI also revealed that it has begun purchasing USD1 as part of its strategic reserves. While specific purchase amounts weren’t disclosed, the company said this move supports liquidity and market-making plans. This “self-buying” strategy—issuing and holding its own stablecoin—is uncommon in traditional finance but a common tactic in crypto markets to provide foundational liquidity and stabilize prices.

USD1 vs. USDC on Solana: Competitive Comparison

Market Share: USDC accounts for 63% of Solana’s stablecoin supply; USD1 is new to the market

Issuer: USDC is issued by Circle (a regulated U.S. company); USD1 by Trump’s WLFI

Custodian: USDC is self-custodied by Circle; USD1 is custodied by BitGo

Political Backing: USDC has no direct political ties; USD1 is endorsed by Trump

WLFI Token Surges 10%, Market Cap Breaks $3.3 Billion

Following the announcement, WLFI’s native token, WLFI, surged nearly 10% within 24 hours, trading around $0.1226 and reaching a market cap of approximately $3.33 billion. This swift reaction indicates market optimism about WLFI’s expansion into the Solana ecosystem. WLFI is the governance token of World Liberty Financial, allowing holders to vote on project developments.

A market cap of $3.33 billion makes WLFI one of the most significant assets in Trump’s crypto empire. Compared to other Trump-related crypto projects like the TRUMP memecoin, WLFI has a clearer business model and revenue streams. The project profits from issuing and circulating USD1 stablecoins, similar to traditional banking seigniorage.

WLFI also disclosed that it has begun acquiring USD1 for its reserves. While specific amounts weren’t detailed, this move supports liquidity and market-making plans. This “self-purchasing” approach—issuing and holding its own stablecoin—is common in crypto but unusual in traditional finance, aimed at providing price stability and liquidity.

Expansion Plans and Regulatory Challenges for Trump’s WLFI

Leadership changes also occurred. On October 29, WLFI appointed former Robinhood executive Mark McCain as its new Chief Legal Officer. McCain previously held senior roles at Charles Schwab, Arta Finance, and Scottrade, bringing extensive regulatory and legal expertise. The company said his appointment reflects its goal to build “open and compliant digital finance.”

This move is strategically significant. Robinhood is one of the largest retail brokers in the U.S. with substantial experience in crypto regulation. McCain’s addition suggests WLFI is preparing for potential regulatory scrutiny. As the project grows and given Trump’s political profile, WLFI is likely to attract regulatory attention.

WLFI’s USD1 strategy is part of a broader vision to expand beyond stablecoins. In early October, CEO Zach Witkoff announced plans to launch a crypto debit card to “connect assets with everyday crypto spending.” The company also revealed efforts to tokenize real-world assets, including real estate, oil, and natural gas.

These expansion plans demonstrate WLFI’s ambitions beyond stablecoin issuance. The crypto debit card would enable USD1 to be used directly for daily transactions, significantly increasing its utility and demand. Tokenizing real-world assets could open new revenue streams if successfully implemented, aligning with current crypto industry trends.

However, rapid expansion carries risks. Trump’s political status could invite stricter regulatory oversight, and any compliance issues might trigger political controversy. Collaborating with meme coin platforms like Bonk, while quickly gaining user engagement and liquidity, also ties WLFI to highly speculative and volatile assets, potentially damaging its reputation as a stablecoin issuer.