A New Loyalty Model for Stablecoins

World Liberty Financial, the DeFi project backed by the Trump family, has unveiled plans for a USD1 points program designed to incentivize its stablecoin users. This initiative, announced on Thursday, August 7, 2025, will initially launch with a select group of crypto exchange partners.

The project’s post on X (formerly Twitter) declared, “Loyalty programs fuel many iconic American brands — from airline miles to hotel points. We’re bringing a similar model to crypto to reward our esteemed users.” This unique approach aims to address the fact that while stablecoins are a cornerstone of crypto adoption, powering trading, payments, and DeFi, users rarely receive direct rewards for their engagement.

Earning Points Through Engagement

The USD1 points program is designed to reward users for various on-chain activities. Participants will be able to earn points by trading USD1 pairs on partner exchanges, holding USD1 balances in their wallets, and staking USD1 to generate yield.

The program also rewards the use of USD1 in approved decentralized finance (DeFi) protocols and interactions with the World Liberty Financial mobile application. The project has stated that specific rules for earning points will be provided by each partner exchange and that point calculations may vary based on platform integrations. The criteria for the program are also expected to evolve as the network expands, offering flexibility and new opportunities for earning.

Strategic Partnership with Gate.io

Although World Liberty Financial has yet to confirm a public launch date for the loyalty program, crypto exchange Gate.io was the first to announce its collaboration on the initiative. Gate.io will offer its users additional points for placing limit orders using the USD1 stablecoin. A representative from Gate Labs clarified that while they are collaborating on the loyalty program, they have not participated in any direct investment in World Liberty Financial or its USD1 token. This partnership highlights a growing trend of collaboration between stablecoin issuers and centralized exchanges to boost liquidity and user engagement, positioning both entities for greater market share and demonstrating the interoperability of digital assets in a multi-platform ecosystem.

The USD1 Stablecoin’s Backing and Compliance

Launched in April 2025, World Liberty Financial’s USD1 stablecoin is presented as a fully compliant and transparent digital asset. The project claims that the stablecoin is entirely backed by short-term U.S. government treasuries, U.S. dollar deposits, and other high-quality cash equivalents. Its issuance is managed by BitGo Trust Company, a regulated entity.

This backing and institutional-grade custody are designed to ensure a 1:1 peg to the U.S. dollar, providing a secure and reliable medium of exchange. The use of a regulated trust company for custody adds a crucial layer of institutional credibility, which is becoming increasingly important in a market with evolving regulatory standards and a growing demand for transparency and security from both retail and institutional investors.

Trump’s Support and Conflict of Interest Concerns

Under President Trump‘s vocal support, dollar-backed stablecoins have seen a significant boom, with the total stablecoin market capitalization recently crossing $250 billion. However, the involvement of the Trump family in World Liberty Financial has also raised concerns about potential conflicts of interest. Trump and his three sons each hold ambassadorial or advocate roles for the project. Critics and ethics experts have pointed to the potential for policies advanced by the administration to directly benefit his family’s financial ventures.

This public scrutiny highlights the ongoing ethical debates at the intersection of politics, business, and cryptocurrency, where the lines between public service and private gain can become blurred, especially when dealing with new and unregulated asset classes.

Community Building Through Airdrops and Incentives

World Liberty Financial has implemented several initiatives to build its community and incentivize early adoption. In June, the project began airdropping USD1 tokens to approximately 85,000 holders of its WLFI governance token. This move was intended to promote the newly launched stablecoin and reward loyal supporters.

Last month, WLFI holders also voted to unlock their tokens, making the asset tradable for the first time. These actions, combined with the new loyalty points program, demonstrate a strategic focus on fostering a dedicated and engaged user base. The loyalty program, in particular, aims to create a continuous feedback loop of rewards and engagement, encouraging users to remain active within the USD1 ecosystem.

The Broader Stablecoin Market Context

The stablecoin market is a critical component of the crypto ecosystem, and its recent growth has been driven by a confluence of factors, including regulatory clarity from legislation like the Genius Act. The boom has attracted a wide range of institutional and retail interest, with major players like Tether and Circle continuing to dominate.

World Liberty Financial’s entry into this market with a loyalty program is a unique attempt to capture a new segment of users by offering a direct incentive for stablecoin usage. This innovative approach could set a new standard for how stablecoins engage with their communities and compete for market share, moving beyond just offering stability to providing tangible rewards for participation.

World Liberty Financial’s Strategic Position

World Liberty Financial’s launch of a loyalty points program for its USD1 stablecoin is a bold move to drive user adoption and engagement in the competitive stablecoin market. By rewarding holding, trading, and staking, the project is introducing a new incentive model inspired by traditional loyalty programs.

This initiative, backed by the Trump family and launched in collaboration with major crypto exchanges like Gate.io, positions USD1 as a significant player. While the political affiliations raise ethical questions, the project’s focus on compliance, transparency, and user rewards highlights a strategic vision for growth. This push for a more integrated and rewarding stablecoin experience marks an important development in the ongoing evolution of decentralized finance.

Read more: Trump’s Financial Scorecard: Over $600 Million from Crypto, Golf, and Global Deals