Today in crypto: World Liberty Financial has entered the crypto lending market, the US Justice Department’s probe into Federal Reserve Chair Jerome Powell may act as a tailwind for Bitcoin and South Korea is reportedly lifting a nine-year ban on corporate crypto investment.
Trump-linked World Liberty brings $3.4B stablecoin into crypto lending markets
World Liberty Financial, a decentralized finance project linked to the family of US President Donald Trump, has entered the cryptocurrency lending market, highlighting renewed interest in onchain credit as regulatory clarity improves.
The new product, called World Liberty Markets, launched on Monday and allows users to borrow and lend digital assets, according to a Bloomberg report. The platform is built around USD1, World Liberty’s US dollar–backed stablecoin, alongside its governance token, WLFI.
Users can post collateral, including Ether (ETH), a tokenized version of Bitcoin (BTC) and major stablecoins such as USD Coin (USDC) and Tether (USDT). The platform is designed to support both lending and borrowing activity within a single onchain marketplace.
World Liberty co-founder Zak Folkman told Bloomberg that additional collateral types will be added over time, potentially including tokenized real-world assets (RWAs). He also said the company is exploring partnerships with prediction markets, cryptocurrency exchanges and real estate platforms.
The lending rollout follows World Liberty’s recent application for a national trust bank charter with the US Office of the Comptroller of the Currency. The company has said the charter would support broader adoption of USD1, which is already being used for cross-border payments and treasury operations.
Powell investigation may introduce “risk premia” for Bitcoin
Bitcoin’s role as a non-sovereign risk asset may benefit from renewed investor focus amid a criminal investigation into US Federal Reserve Chair Jerome Powell.
Federal prosecutors opened a criminal investigation into Powell over testimony he gave to a Senate committee about renovations to the Fed’s buildings.
In a Sunday statement, Powell said the investigation is “a consequence of the Federal Reserve setting interest rates based on our best assessment of what will serve the public, rather than following the preferences of the President.” President Donald Trump has repeatedly attacked Powell and the Fed for refusing to grant his demands to cut interest rates.
The investigation introduces short-term political headwinds for all risk assets, particularly US equities. However, a “systemic correction” in equities may bring renewed demand for Bitcoin’s (BTC) “non-sovereign” attributes, according to analysts from crypto exchange Bitunix.
“When confidence in dollar credibility and central bank independence is questioned, decentralized assets tend to receive narrative-driven risk premia,” the analysts told Cointelegraph. “Over the long term, if political interference in monetary policy becomes structural, Bitcoin’s role as a “non-sovereign risk asset” is likely to be further reinforced.”
Bitcoin rose 0.85% over the last 24 hours, while privacy-preserving tokens Monero (XMR) rose 18% and Zcash (ZEC) rose 6.5% during the same period.
South Korea to lift ban on corporate crypto investment: Report
South Korea’s Financial Services Commission (FSC) is reportedly updating its guidelines to allow corporations to invest in digital assets after a nine-year ban.
Listed companies and professional investors will be able to invest up to 5% of their equity capital in crypto assets, reported local news outlet Seoul Economic Daily on Sunday.
According to the report, a senior FSC official familiar with the matter said the authorities will “release the final guidelines in January [or] February and allow virtual currency transactions for investment and financial purposes by legal entities.”
The move overturns a nine-year ban on corporate crypto investment dating back to 2017, when financial authorities banned institutional participation amid concerns over money laundering.