The borrowing pushed the $1 pool to a 93% utilization rate, meaning that retail depositors who had lent $1 to the pool and hoped to withdraw at will could not do so until the loans were repaid. WLFI redeemed $25 million of the position, then minted $25 million in fresh USD a day later, actively managing the token supply through April. World Liberty Financial did not respond to a request for comment on the report.
World Liberty is also in litigation with Justin Sun, the crypto tycoon and initial buyer of WLFI governance tokens, who sued the company, alleging it improperly froze his assets. WLFI sued for defamation.
Some observers say the commercial impact of Sunday’s event is obvious.
“Paying the fighters with the $1 stablecoin would have the same economic function as writing them a check,” Todd Phillips, a crypto expert at the Klaros Group, told the Guardian. “By announcing to the world that they’re doing it in USD1, it’s like they’re announcing to the world that USD1 exists and that it’s connected to the UFC and the White House.”
The circulating supply of USD1 increased to around $4.6 billion, up from $3.3 billion on January 1.
The company also applied for a banking license from the Office of the Comptroller of the Currency.
