Key Takeaways
- World Liberty Financial has integrated its USD1 stablecoin as a native asset on Canton Network, targeting institutional applications
- With a valuation of $4.05 billion, USD1 now ranks as the sixth-largest stablecoin globally
- The stablecoin enables institutional firms to settle derivatives collateral, facilitate lending, issue assets, and execute cross-border transactions
- Canton Network handles more than $9 trillion in tokenized assets each month, with daily movements of $350 billion in tokenized US Treasurys
- World Liberty Trust Company secured conditional OCC charter approval in August but remains unauthorized to conduct operations
World Liberty Financial has rolled out its USD1 stablecoin as a native asset on Canton Network, providing financial institutions with a dollar-denominated settlement mechanism for tokenized real-world assets.
This integration marks a shift from bridging USD1 from external blockchains to native issuance on Canton itself. The approach enables simultaneous settlement of both cash and asset components within a single transaction.
Canton’s Native Settlement Architecture
The Canton platform employs a synchronized transfer mechanism that ensures both transaction legs complete together or not at all. This atomic settlement structure minimizes counterparty risk in institutional transactions involving tokenized instruments such as securities, bonds, and sovereign debt.
Canton incorporates granular privacy features and permission frameworks, enabling organizations to control transaction visibility according to their compliance obligations and regulatory constraints.
According to network data, Canton facilitates the transfer of over $9 trillion in tokenized assets monthly. The platform reports daily movement of more than $350 billion in tokenized US Treasury securities.
A practical demonstration of this infrastructure occurred last July when Tradeweb reported that Franklin Templeton executed a tokenized Treasury transfer to Virtu Financial against USDCx payment, with Canton coordinating the atomic swap in real time.
Financial institutions now have the option to substitute USD1 for alternatives like USDCx in the payment component of these transactions.
USD1 Development and Market Position
USD1 made its debut in March 2025. The stablecoin maintains reserve backing consisting of short-duration US Treasury securities, government-sponsored money market funds, and cash deposits. BitGo Bank and Trust serves as the current issuer and reserve custodian.
The stablecoin’s market capitalization has expanded significantly from approximately $2 billion in December 2025, when World Liberty and Canton initially revealed their integration plans, to its current $4.05 billion level.
A substantial portion of this early expansion stemmed from a single $2 billion transaction. In May 2025, MGX, an Abu Dhabi government-backed investment entity, utilized USD1 to finalize its stake acquisition in Binance.
World Liberty CEO Zach Witkoff attributed the expansion to genuine institutional appetite and rejected suggestions that the Trump family’s association with the project influenced market adoption. World Liberty Financial emerged as a Trump-affiliated cryptocurrency initiative that launched in 2024.
The venture’s connections to President Donald Trump and participation from a foreign government-linked investor have attracted examination from Democratic members of Congress.
On August 14, the Office of the Comptroller of the Currency granted World Liberty Trust Company preliminary authorization to establish a national trust bank. The entity must satisfy capital adequacy standards and additional regulatory prerequisites before commencing operations.
Upon final approval, World Liberty Trust would assume responsibility for USD1 issuance and reserve administration from BitGo, while offering federally regulated digital asset custody capabilities.
Canton is simultaneously pursuing public sector applications. Digital Asset, in partnership with former House Speaker Paul Ryan’s American Idea Foundation, intends to test a Canton-powered benefits disbursement platform across three US states beginning in early 2027, subject to federal authorization.
The post USD1 Stablecoin Expands With Native Canton Network Integration appeared first on Blockonomi.
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This articles is written by : Nermeen Nabil Khear Abdelmalak
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