WLFI mints $25 million in fresh USD1 and burns $3 million, days after repayment claim

Markets Share Share this article Copy link X icon X (Twitter) LinkedIn Facebook Email WLFI mints $25 million in fresh USD1 and burns $3 million, days after repayment claim The mint and a simultaneous $3 million burn come days after the venture said it had repaid $25 million of the borrowing position that left depositors unable to withdraw from a DeFi lending pool. By Shaurya Malwa | Edited by Sam Reynolds Apr 13, 2026, 12:30 p.m. Make preferred on What to know : World Liberty Financial minted 25 million USD1 stablecoins and burned 3 million on Monday, resulting in a net $22 million increase in USD1 circulation as it manages fallout from its Dolomite lending position. The moves follow the firm's claim that it has repaid $25 million of the roughly $75 million it borrowed against its own governance token, a strategy that had pushed Dolomite's USD1 lending pool to near-100% utilization and trapped other depositors. While the mint was funded via BitGo Custody and the burn permanently removed tokens from circulation, World Liberty Financial has not disclosed why 3 million USD1 were retired or how the newly created tokens will be used. World Liberty Financial minted 25 million USD1 stablecoins on Monday morning and burned 3 million through its TokenGovernor contract, on-chain data shows, as the Trump-linked venture continues managing the fallout from a lending position that trapped depositors on DeFi protocol Dolomite. The activity follows WLFI's statement last week, posted in response to CoinDesk's reporting on the Dolomite transactions , that it had repaid $25 million of the roughly $75 million it borrowed against its own governance token. The venture deposited billions of WLFI tokens as collateral and borrowed stablecoins that were partially routed to Coinbase Prime, pushing Dolomite's USD1 lending pool to near-100% utilization and leaving other depositors unable to fully withdraw. Monday's mint was funded through BitGo Custody and executed via WLFI's USD1 Mint Authority contract. The 3 million USD1 burn moved from an address starting 0x2ce to the TokenGovernor contract before being sent to the null address, permanently removing the tokens from circulation. Smaller test transactions of $10, $10,000, and $40,800 in USD1 were sent to a previously inactive address in the hours before the mint, a pattern consistent with wallet verification ahead of larger transfers. The net effect is a $22 million increase in USD1 circulation. The simultaneous mint and burn indicates active supply management rather than a simple expansion. However, the burn raises its own question of where those 3 million USD1 came from and why they were retired rather than redeployed. Stablecoin issuers routinely burn tokens when collateral is redeemed, but WLFI has not disclosed the specific reason. It is not yet clear whether the newly minted USD1 is intended to replenish Dolomite's lending pool, fund additional treasury operations, or serve another purpose. WLFI's governance token has fallen roughly 15% since CoinDesk first reported the Dolomite transactions on April 9. Dolomite co-founder Corey Caplan is an advisor to World Liberty Financial. CoinDesk has reached out to World Liberty Financial for comment in European morning hours. More For You Strategy buys 13,927 bitcoin for $1 billion, entirely through STRC By James Van Straten | Edited by Oliver Knight 21 minutes ago Last week's purchases were completely funded by sales of Stretch, the companies perpetual preferred stock. What to know : Strategy purchased 13,927 bitcoin for about $1 billion last week at an average price of $71,902 per coin. The company has spent roughly $59.02 billion on its bitcoin at an average cost of $75,577 per coin. MSTR shares are down 2.5% pre-market. Read full story Latest Crypto News Strategy buys 13,927 bitcoin for $1 billion, entirely through STRC 21 minutes ago AI agents are set to power crypto payments, but a hidden flaw could expose wallets 58 minutes ago Bitcoin anchors near $70,000 as RAVE's 3,400% surge signals speculative froth 1 hour ago Crypto markets stall as oil surges past $100 on Strait of Hormuz blockade 1 hour ago Bank of Korea calls for stock-style circuit breakers on BTC exchanges 1 hour ago The one metric investors are overlooking in Michael Saylor’s Strategy 2 hours ago Top Stories WLFI threatens legal action against Justin Sun after he accuses Trump-linked project of deceptive DeFi deals 6 hours ago Alameda moves $16 million in Solana's SOL token for possible creditor distribution 5 hours ago Attacker mints $1 billion Polkadot tokens on Ethereum, ends up stealing just $250,000 5 hours ago StarkWare cuts jobs in reorganization as Starknet revenue plunges 99% from peak 2 hours ago Super PAC tied to Tether makes first ad buy from firm founded by Tether's U.S. CEO 23 hours ago Strategy signals another bitcoin buy as company needs just 2% annual BTC growth to cover dividends 7 hours ago