Trump-Linked Stablecoin Used for Fighter Bonuses at White House UFC Event

UFC Freedom 250 distributed fighter bonuses in USD1, a stablecoin issued by the Trump-linked crypto project World Liberty Financial, during an event hosted at the White House.

USD1, created by the Trump family-affiliated World Liberty Financial, has moved from restricting retail users in a DeFi lending pool to being used as a payout mechanism for fighters on the White House lawn.

The UFC announced on Friday that World Liberty Financial would sponsor a $250,000 performance bonus pool at UFC Freedom 250, a mixed martial arts event staged on the South Lawn of the presidential residence on June 14, coinciding with President Donald Trump’s 80th birthday. Fighters across seven bouts received their bonuses in USD1.

The payout marks one of the most high-profile real-world uses of the USD1 stablecoin so far.

The promotional push follows earlier controversy reported by CoinDesk, which highlighted borrowing activity that briefly impacted WLFI token sentiment and raised questions within crypto communities.

At the center of that controversy, World Liberty Financial borrowed more than $75 million in stablecoins from the DeFi protocol Dolomite, whose co-founder Corey Caplan also advises WLFI. The loan was backed by 3 billion WLFI governance tokens and supplemented with USD1 deposits, contributing to heavy utilization of the lending pool.

At one point, utilization reached 93%, temporarily preventing retail lenders from withdrawing funds. WLFI later repaid $25 million of the loan and subsequently minted another $25 million in USD1 within days, actively adjusting supply during April. The company did not respond to requests for comment.

World Liberty Financial is also involved in legal proceedings with crypto entrepreneur Justin Sun, who alleges his WLFI holdings were improperly frozen, while the company has filed a defamation countersuit.

Some analysts argue the real impact of the UFC event is primarily promotional rather than financial.

“Paying the fighters in the USD1 stablecoin would have the same economic function as writing them a check,” said Todd Phillips of the Klaros Group. “The significance is in the branding—publicly signaling that USD1 is being used in a high-visibility setting tied to the UFC and the White House.”

USD1’s circulating supply has expanded to roughly $4.6 billion, up from $3.3 billion at the start of the year.

The firm has also applied for a banking license through the Office of the Comptroller of the Currency.

According to public financial disclosures, President Trump holds more than $50 million in World Liberty Financial-related assets. The administration maintains there is no conflict of interest, stating that his holdings are managed through a trust overseen by his children.