TLDRWorld Liberty Financial says USD1 stablecoin circulation has topped $4 billion, driven by institutional demand.CEO Zach Witkoff denies that political ties to the Trump family fueled the growth.MGX used USD1 for its $2 billion Binance investment in 2025, an early institutional use case.The OCC gave preliminary approval for a related trust bank on August 14.Lawmakers continue to question foreign ownership links tied to the company.World Liberty Financial says its USD1 stablecoin has grown past $4 billion in circulation. The company’s CEO, Zach Witkoff, says the growth reflects real demand rather than political favors.Witkoff made the comments after CNBC reported on the story on August 25. He said USD1’s growth shows the token is being used regardless of any ties to President Donald Trump’s administration.The comments came shortly after federal regulators gave early approval for a new trust bank tied to the company.How USD1 Has Grown Since LaunchUSD1 launched in March 2025. It is a dollar backed digital token, meaning each coin is supposed to be backed by cash and similar safe assets held at financial institutions.The token became one of the larger dollar backed cryptocurrencies in the market. Its early growth was tied closely to one large deal.Abu Dhabi backed investment fund MGX used USD1 to complete a $2 billion investment in the crypto exchange Binance in May 2025. Witkoff announced the deal at a conference in Dubai, calling USD1 the official settlement token for the transaction.That single deal gave USD1 a boost in credibility. But it also tied much of its supply to one exchange.A Forbes report from February, based on data from Arkham Intelligence, found that wallets linked to Binance and its customers held close to $4.7 billion in USD1. That made up about 87 percent of the token’s total supply at the time.Circulation has since dropped below that peak level. World Liberty Financial says it remains above $4 billion today.The stablecoin is currently available on several exchanges, including Coinbase, Kraken, and Crypto.com.Regulatory Approval and Political QuestionsOn August 14, the Office of the Comptroller of the Currency gave preliminary conditional approval to World Liberty Trust Company. The application had been filed by WLTC Holdings LLC back in January.Under the proposed structure, the trust would issue and redeem USD1 tokens. It would also manage reserves and provide custody services, work currently handled by BitGo.The trust would not offer retail banking services. It would not take deposits, offer checking accounts, or issue loans.Political scrutiny of the company has grown alongside its business. According to Reuters, a firm connected to the Trump family controls 38 percent of World Liberty Financial’s parent company.Zach Witkoff is the son of Steve Witkoff, who serves as a Trump envoy and is also an emeritus founder of the crypto company.The White House has said Trump’s business assets are held in a trust controlled by his children. It has also said Trump is not personally managing World Liberty Financial while in office.Scrutiny increased further after reports that an investment vehicle called Aryam Investment 1 took a 49 percent stake in World Liberty Financial for $500 million. That vehicle is backed by UAE National Security Adviser Sheikh Tahnoon bin Zayed Al Nahyan, who also chairs MGX.In June, Democratic senators called for hearings into the deal. They want to know whether it played any role in decisions about selling weapons or advanced AI chips to other countries.The OCC has said foreign investors cannot serve as principal shareholders of the proposed bank. Several investors reportedly signed agreements limiting their control over the bank’s operations to address that requirement.For now, World Liberty Financial says USD1 remains above the $4 billion mark, and the trust bank application continues moving through the federal approval process.The post World Liberty Financial’s USD1 Stablecoin Tops $4 Billion in Circulation appeared first on Blockonomi.