World Liberty Financial has launched its $4.05 billion USD1 stablecoin natively on the Canton Network, giving institutions a dollar-based settlement asset for tokenized securities and other real-world assets.
Native Issuance on Canton
USD1 is now issued directly on Canton rather than arriving through a bridge from another blockchain. Native issuance lets an institution exchange USD1 and a tokenized asset as parts of the same transaction. Canton's system synchronizes both transfers so the cash and asset can settle together, reducing the risk that one side completes while the other remains outstanding.
Canton applies privacy and permission controls to transactions conducted on its public blockchain. The network says the system allows participating firms to control which parties can view transaction information while supporting the compliance requirements used in regulated financial markets. Through the integration, institutions can use USD1 to provide collateral for derivatives and institutional loans, fund asset issuances, process redemptions, and settle cross-border payments around the clock.
A Cash Settlement Option for Tokenized Assets
Tokenized government debt and other financial assets often require a corresponding cash payment when they change hands. World Liberty said adding USD1 gives Canton users a fully reserved dollar stablecoin for that cash side without moving the transaction through a separate payment network. USD1 is redeemable for U.S. dollars on a one-to-one basis, with reserves including dollar deposits, U.S. government money market funds, and other cash equivalents, with reserve reports published monthly.
Canton said more than $9 trillion in tokenized assets are issued or processed through its network each month. The company also reported that more than $350 billion in onchain U.S. Treasurys moves across Canton daily. Government debt on Canton is used as collateral, repurchase agreements, and treasury-management transactions. In such trades, delays between the transfer of an asset and the related payment can tie up capital or require financial institutions to retain additional liquidity.
USD1 Reaches $4.05 Billion Market Cap
USD1's market value has reached approximately $4.05 billion, according to DeFiLlama stablecoin data, placing it sixth among dollar-pegged tokens by capitalization. BitGo Bank & Trust currently issues the stablecoin, manages its reserve assets, and processes minting and redemption requests on the company's behalf.
An earlier institutional transaction showed how the structure works with another stablecoin. Tradeweb said in July that Franklin Templeton transferred a tokenized U.S. Treasury security to Virtu Financial in exchange for USDCx, with Canton synchronizing the two sides in real time. World Liberty and Canton initially disclosed plans for the USD1 deployment in December 2025, when the stablecoin had a market capitalization of more than $2 billion.
U.S. Trust Bank Approval Still Pending
The Office of the Comptroller of the Currency granted World Liberty Trust Company conditional charter approval on Aug. 14, allowing the company to proceed with organizing a national trust bank. The OCC's decision does not allow the proposed bank to begin operating. World Liberty Trust must maintain at least $20 million in eligible capital, appoint a qualified internal audit manager, and complete other preopening requirements before receiving final authorization.
If the OCC issues that authorization, the trust company plans to take over USD1 issuance, redemption, and reserve management from BitGo. The proposed institution would also provide digital-asset custody and stablecoin conversion services to institutional clients under federal supervision. World Liberty CEO Zach Witkoff attributed USD1's growth to institutional demand and rejected claims that the company's relationship with the Trump family accounted for the stablecoin's adoption.
