Depth Analysis of Trump's Family Encryption Project WLFI: Business Status, Background Details, Token Mechanism, and Valuation Expectations

Introduction

Recently, after Circle went public, its stock price surged, and global stablecoin concept stocks became exceptionally active. The U.S. stablecoin bill "Genius Act" has passed the Senate vote and is currently under consideration in the House of Representatives. Meanwhile, news has emerged that the tokens of the Trump family's World Liberty Financial project may be unlocked for circulation ahead of schedule, becoming a hot topic in the altcoin market.

This article will analyze the business status, project background, Token mechanism, and valuation expectations of World Liberty Financial from multiple perspectives, providing readers with several viewpoints for observing the project.

Business: Current Status of Products and Core Competitive Advantages

World Liberty Financial(WLFI) is a decentralized financial platform, with its core product being the USD stablecoin USD1. USD1 is a stablecoin that is pegged 1:1 to the US dollar and fully backed by cash and US Treasury reserves. WLFI also plans to offer lending and DeFi applications, but these are not yet live.

USD1 business data

As of June 2025, the circulation of the USD1 stablecoin is approximately $2.2 billion. Among them, the supply on BNBChain is 2.156 billion, Ethereum's supply is 48 million, and Tron’s supply is 26,000. The USD1 issued on BNBChain accounts for 97.8%.

In terms of user volume, BNBChain has 248,000 holding addresses, Ethereum has 66,000, and Tron has only 1.

From the holding situation, 93.7% of USD 1( on BNBChain, approximately 2.02 billion ), is concentrated in two addresses on a certain trading platform, with 1.9 billion in one address.

The market capitalization of USD1 was only around 130 million before May 1, 2025, but on May 1, it soared to 2.13 billion, increasing by nearly 2 billion USD overnight. This was mainly due to a 2 billion dollar equity investment by Abu Dhabi investment company MGX in a trading platform, choosing USD1 as the payment currency.

Business Cooperation

WLFI has currently established partnerships with multiple institutions:

• Collaborated with London-based encryption fund Re7 to launch USD1 stablecoin vault on Euler Finance and Lista.
• A large decentralized lending platform has initiated a proposal to introduce USD1 into its markets on Ethereum and BNBChain.
• USD1 has been launched on multiple centralized and decentralized trading platforms.

World Liberty's competitive advantage

The core advantage of World Liberty lies in the strong influence of the Trump family in politics, which gives the project an inherent advantage in specific business expansions. This is also a channel for interest transfer that individuals, organizations, or even countries with business or political needs related to Trump may attempt.

However, the project also faces several major risks:

1. The Trump family's channels for interest transmission are numerous, and World Liberty may not be the final choice.
2. WLFI Token is decoupled from the actual value of the project.
3. The Trump family may abandon heavy operation of the project after selling tokens.

Background: Project Backing and Financing Details

Core Team Background

The core team of World Liberty Financial mainly comes from the political and business sectors, which is also the main source of the project's influence.

The core figures of the project are former U.S. President Donald Trump and his three sons, Donald Trump Jr., Eric Trump, and Barron Trump.

It is worth noting that the official website has recently changed the job descriptions of the Trump family members: Trump himself has changed from "Chief Encryption Advocate" to "Honorary Co-Founder," and his three sons have changed from "Web3 Ambassadors" to "Co-Founders."

Another important figure is Steven Witkoff, a long-time business partner of Trump and a New York real estate mogul, who serves as honorary co-founder. Witkoff was appointed by Trump as the "U.S. Middle East Envoy" and played a key role in several important negotiations. Witkoff's two sons are also co-founders of the project.

In addition to political and business celebrities, the technology and operations of WLFI are mainly managed by individuals from the encryption industry, including serial entrepreneurs Zak Folkman and Chase Herro, and former Paxos co-founder Richmond Teo.

changes in the Trump family's equity in the project

The Trump family's equity stake in World Liberty Financial has been declining, currently down from the initial 75% to 40%. The declining equity may have been transferred to certain investors.

Financing history and investment institutions

Since its launch in September 2024, World Liberty Financial has raised over 700 million USD through multiple rounds of financing, and its valuation has also increased rapidly. The main financing situation is as follows:

• September 2024: Seed round, raising $10 million, with a valuation of $100 million
• November 2024: Series A, raised 100 million USD, valued at 1 billion USD
• January 2025: Series B, raised $300 million, valuation $3 billion
• May 2025: Series C, raised $200 million, valuation $5 billion
• June 2025: Strategic financing, raising 100 million dollars, with a valuation of 10 billion dollars.

It is worth noting that according to project disclosures, the Trump family can receive 75% of the net income from the Token sale and 60% of the net profit from future business.

Token: Allocation Details, Functions and Protocol Revenue

Token allocation and unlocking details

The total supply of the governance token $WLFI on the WLFI platform is 100 billion coins, with the distribution plan as follows:

• Token Sale: 35%( completed 25% public offering )
• Team: 20%
• Ecosystem Fund: 20%
• Community Reward: 15%
• Technical Development:10%

Currently, the specific unlocking terms for other tokens, apart from the public offering part, have not been clearly announced.

Token functionality

WLFI is a purely governance Token, it does not have dividend or profit rights, nor does it represent a claim to equity in the project company; its value mainly comes from participation in governance.

Protocol Revenue Distribution

According to the official statement, the protocol revenue mainly belongs to the entity company behind WLFI, and the WLFI Token itself is not directly linked to business revenue.

Valuation: WLFI Long-term Value Expectations

Given that WLFI's core business is stablecoins, we can reference the valuation levels of a major competitor company and use its "market cap/stablecoin market cap" ratio to estimate a reasonable valuation range for WLFI.

Based on the current scale of 2.2 billion stablecoins for WLFI, the corresponding project valuation is between 1.452 to 1.672 billion US dollars, and the price of WLFI Token is approximately 0.0145-0.0167 USD.

But investors' expectations for WLFI may be higher, for reasons including:

• Early circulation is small, which may enjoy a premium.
• In the early stages, there is great growth potential.
• Have political resources, or have "Trump premium"
• The encryption market sentiment is more aggressive, potentially leading to higher premiums.
• Or issue tokens when the Genius Act passes to enjoy market enthusiasm.

At the same time, there are some risk factors:

• The network effect of stablecoin business is strong, and new players have obvious disadvantages.
• Project revenue is unrelated to WLFI Token, lacking value capture.
• The current business volume may have inflated figures.
• It may just be one of many projects of the Trump family, lacking long-term investment.
• The liquidity in the encryption market is exhausted, and new coins may experience a significant drop after their launch.

The short-term trend of the WLFI Token after its launch largely depends on the passing of the Genius bill and whether the Trump family is willing to use WLFI as an important medium for interest exchange. If there is a lack of intensive business cooperation news, the status of WLFI in the Trump family's business empire may be worrying.

The specific time when WLFI Token can be transferred may be after the final formal approval of the "Genius Act" bill.