WLFI first introduced USD1 in March, initially launching on Ethereum and BNB Chain. The stablecoin is fully backed 1:1 by U.S. dollars and government money market funds, with monthly attestations available for public review.
Since then, USD1 has quickly grown to a market cap of $2.81 billion, gaining momentum thanks to listings on major exchanges such as Binance and Bybit as well as top DeFi platforms like Uniswap and PancakeSwap.
The recent integration with AB Chain is only the latest step in WLFI’s rapid expansion. Earlier this week, USD1 was added to the StableStocks platform, where users can trade nearly 200 tokenized U.S. stocks and ETFs directly using the stablecoin.
WLFI has also rolled out incentive programs to bolster DeFi adoption. On the Dolomite protocol, users can earn points by supplying USD1, reinforcing its push to expand the stablecoin’s utility across multiple ecosystems. The company is also strengthening its internal structure, recently hiring former Robinhood and Charles Schwab legal executive Mack McCain as General Counsel.
Controversy surrounding USD1 freezes investor funds
Despite its fast growth, WLFI is facing mounting controversy over alleged wallet freezes tied to its compliance systems. Ethereum developer Bruno Skvorc accused the project of locking his tokens after his wallet was flagged as “high risk,” calling the action “mafia-style” and “theft.”
The situation escalated when Tron founder Justin Sun claimed that his $75 million position in WLFI had also been frozen, describing the move as “unreasonable” and contradictory to the principles of decentralized finance.
Blockchain analyst ZachXBT suggested that automated compliance filters may have triggered the incidents, potentially due to historic interactions with sanctioned platforms like Tornado Cash.
As WLFI accelerates USD1’s expansion, the platform faces increasing pressure to clarify its compliance practices and restore confidence among investors.
