World Liberty Financial has announced the launch of USD1 as Solana’s first market. This initiative includes supplier incentives in WLFI and KMNO tokens. Kamino has highlighted USD1’s full backing by U.S. government money market funds and cash equivalents.
What Is USD1 and How Does It Work
USD1 is a stablecoin that is pegged one to one to the U.S. dollar, meaning each token can be redeemed for exactly one dollar. Issued by World Liberty Financial, a DeFi project associated with the Trump family, it relies on secure assets such as Treasury funds to maintain stability, functioning similarly to bank savings accounts but on the blockchain. Users can deposit USD1 into Kamino, a popular Solana lending protocol, to supply liquidity or borrow other assets against it. Suppliers are rewarded with WLFI and KMNO tokens, which are Solana’s governance and liquidity tokens, thereby creating an incentive for early participation.
A real-world example illustrates the appeal: imagine a freelancer in Latin America holding USD1 to hedge against fluctuations in their local currency. They can then lend this USD1 on Kamino to earn a 5% yield while simultaneously borrowing stable SOL for trading purposes, with all transactions settling in seconds.
USD1 is now live on @kamino.
Solana’s first lending market with supplier incentives in $WLFI and $KMNO.
Supply. Borrow. Access incentives.
USD1 szn is here. 🦅☝️ https://t.co/UBMWvyyF88
— WLFI (@worldlibertyfi) January 19, 2026
This integration capitalizes on Solana’s rapid DeFi growth. The total value locked on Solana recently surpassed 10 billion dollars last quarter, driven by its low fees and high transaction speeds. A notable trend is the increasing traction of politically branded stablecoins, with USD1 following in the footsteps of PayPal’s PYUSD as issuers merge real-world brand recognition with blockchain functionality. Credible data from DeFi trackers indicates that Kamino’s total value locked (TVL) has exceeded 2 billion dollars, establishing it as Solana’s leading lending hub where new assets like USD1 can quickly attract substantial deposits.
More About Solana’s Ecosystem
The number of stablecoin users on Solana has reached a record high of 5 million wallets, signifying a significant surge in the network's adoption. This milestone underscores the growing reliance on stablecoins by everyday users, traders, and institutions for fast, low-cost transactions on Solana, where fees frequently remain below one cent.
💵 $SOL stablecoin users had hit an all-time high at 5 MILLION wallets!
That’s 5M people actually using crypto for payments, not speculation.
And Solana’s super low gas costs and transaction speeds make it feel like magic.
We’re excited that everything from gaming to… pic.twitter.com/Pdg1o4k9tv
— Demether (@DemetherDeFi) January 20, 2026
This growth is directly linked to the proliferation of DeFi platforms such as Kamino and Jupiter. These platforms utilize stablecoins to facilitate lending, borrowing, and swaps, attracting new users who prioritize speed over the higher costs associated with Ethereum. With the total stablecoin supply on Solana recently reaching $15 billion, representing a 200% increase year-over-year, this surge in users indicates genuine utility beyond speculative trading and positions the Solana chain as a primary hub for on-chain financial activities.