World Liberty Financial stablecoin used for UFC White House bonus payouts

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World Liberty stablecoin UFC payouts

Highlights

UFC Freedom 250 paid a $250,000 fighter performance bonus pool in USD1 stablecoin at a June 14 White House event, boosting commercial visibility.
World Liberty Financial, backed by the Trump family, faces scrutiny after borrowing over $75 million in stablecoins on Dolomite and restricting retail withdrawals due to 93% USD1 pool utilization.
USD1's circulating supply surged from $3.3 billion on Jan. 1 to about $4.6 billion amid ongoing litigation with Justin Sun and a banking license application.

White House event puts USD1 in spotlight

As reported by CoinDesk, UFC Freedom 250 uses World Liberty Financial as presenting partner for a $250,000 fighter performance bonus pool at the White House event held on June 14. The bonuses are paid in USD1 across seven matches, making the stablecoin one of the most visible commercial uses of the token so far.

The contest takes place on the south lawn of the presidential residence on Sunday, coinciding with President Donald Trump's 80th birthday. World Liberty Financial, which is backed by the Trump family, is using the event to raise the profile of USD1 beyond crypto-native markets.

Growth push follows lending controversy and legal dispute

The promotional push comes months after scrutiny over World Liberty Financial's borrowing activity on Dolomite, a DeFi lending protocol. The company borrowed more than $75 million in stablecoins using 3 billion WLFI governance tokens as collateral, while also depositing its own USD1, a structure that pushed the USD1 pool to 93% utilization and temporarily prevented retail depositors from withdrawing funds until loans were repaid.

World Liberty Financial later repaid $25 million of the position and then minted $25 million in fresh USD1 within days, actively managing supply through April. The company does not respond to a request for comment on that report.

World Liberty Financial is also in litigation with crypto entrepreneur Justin Sun, an early buyer of WLFI governance tokens, after he alleges the company improperly froze his holdings. WLFI countersues for defamation.

USD1's circulating supply has grown to about $4.6 billion from $3.3 billion on Jan. 1, while the company also applies for a banking license from the Office of the Comptroller of the Currency. Todd Phillips, a crypto expert at Klaros Group, tells The Guardian that paying fighters in USD1 functions economically like writing a check, but publicly doing so advertises the stablecoin's connection to both the UFC and the White House.

In our earlier coverage of the White House UFC event, we outlined how the South Lawn was transformed into a temporary arena for a seven-fight card timed with President Donald Trump’s 80th birthday and the America 250 celebrations. We also highlighted the scrutiny around the show’s reported costs, the heavy government resource footprint, and the broader political optics as the administration faced other pressing challenges.

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