World Liberty Financial (WLFI), a crypto venture backed by Donald Trump’s family, expanded the circulation of its stablecoin USD1 by minting $205 million. The move raised the total supply to $2.4 billion, cementing its position as the sixth-largest stablecoin by market capitalization. However, the expansion coincided with allegations of insider trading directed at its treasury firm, ALT5 Sigma.

World Liberty Expands USD1 Supply

World Liberty Financial confirmed the minting of $205 million worth of USD1 in a post on X. The expansion raised USD1’s total supply to $2.4 billion, marking its largest increase since April. According to data from analytics firm Nansen, WLFI’s treasury reserves now stand at $548 million, with USD1 representing the largest portion.

Nansen reported that USD1 accounts for nearly 40% of the treasury at $212.59 million. The stablecoin overtook WLFI’s allocation in AETHUSDT, which holds $84.86 million. Analysts have suggested that the expansion may be timed with the planned launch of WLFI’s governance token.  It is anticipated that the token will list in September, initially on both centralized and decentralized exchanges, and that the unlock schedule will be community-driven.

USD 1, which debuted earlier this year, has fast emerged as a player in the stablecoin industry. Though it lags behind prominent ones such as Tether USDT and Circle USDC, it has observed rapid growth. Nansen’s report indicates that the latest issuance cements USD1 as a major part of WLFI’s long-term strategy to grow its treasury base and expand market presence.

ALT5 Sigma Responds to Insider Trading Allegations

While WLFI celebrated the expansion of USD1, its treasury management firm, ALT5 Sigma, faced allegations of insider activity. Several outlets reported that U.S. regulators were investigating connections between ALT5 Sigma and venture capitalist Jon Isaac. Reports claimed Isaac was involved during the firm’s $1.5 billion funding round.

ALT5 Sigma issued a statement denying the allegations. “The company does not know about any current investigation regarding its activities by the US SEC,” it said. The firm clarified that Isaac never held any executive position, such as president or advisor. Isaac also released a statement, explaining that he is the CEO of Nasdaq-listed Live Ventures and not an ALT5 executive, though he remains a major shareholder with over one million shares.

Setting the record straight on reports from @CoinpediaNews and @theinformation: I am NOT the president of ALT5 Sigma and I am NOT under SEC investigation mentioned in these reports.

I am the CEO of Live Ventures Incorporated (NASDAQ: LIVE), a publicly traded company. Any SEC…

— Jon Isaac (@Jonisaac702) August 19, 2025

It is also indicated in the public filings that Isaac entered a consulting agreement with ALT5 in 2024. The deal comprised a convertible note of $540,000 that was turned into equity. The subsequent reports implicating his name in the earnings inflation and share selling boosted the suspicions of the USD1 reserves on WLFI through the development of a USD1.5 billion direct offering.

Market Strategy and Political Branding of Stablecoins

Despite controversy, WLFI continues to move forward with its market expansion. Interest in politically branded stablecoins lies behind the rapid adoption of USD1, say analysts. Statistics indicate that USD1 has captured the upper hand in a competitive environment where the confidence of investors is an important element.

The growth of USD1 could even affect the future launch of the governance token by WLFI. Community-oriented unlocks and governance voting will be implemented in the token. WLFI confirmed plans for listings on major exchanges within the next two months. Still, analysts insist that maintaining the trust of various investors and the quest to achieve fast growth are two vital aspects.

Regulators both in the United States and other jurisdictions will see a trend in the use of stablecoins, industry veterans say. As seen in data provided by CoinMarketCap and Nansen, USD1 is a minor stablecoin compared to USDT and USDC, but its rapid growth allowed it to challenge many of the mid-sized stablecoins. This positions WLFI’s stablecoin as one of the projects to watch as the stablecoin sector faces rising regulation.