World Liberty Financial has expanded its USD1 stablecoin to Canton Network, marking a new attempt to position the dollar-pegged asset at the center of institutional blockchain finance and the growing market for tokenized real-world assets.
The move makes USD1 natively issued on Canton, a blockchain designed for regulated financial markets, privacy and interoperability between institutional applications. World Liberty Financial said the integration will allow institutions using the network to configure USD1 as a settlement option for tokenized assets and other financial transactions.
The announcement comes as the competition to provide the infrastructure behind tokenized finance intensifies. While institutions have increasingly moved assets such as government bonds and other securities onto blockchain networks, the settlement side of those transactions remains a major part of the infrastructure challenge.
World Liberty Financial is now betting that USD1 can help fill that gap.
USD1 Targets the Settlement Layer of Tokenized Finance
The arrival of USD1 on Canton Network gives institutional users another option for moving dollar liquidity across tokenized markets.
According to the announcement, USD1 can be used for collateralization in derivatives and institutional lending, cross-border payments, asset issuance, funding and redemption, and financing activities across participating institutions.
The central argument behind the integration is relatively straightforward. Tokenizing an asset does not automatically solve the problem of settlement.
A financial institution may have tokenized government bonds or other assets on a blockchain, but transactions still require a cash or cash-equivalent component. If that payment process operates separately from the tokenized asset, settlement can become slower and more operationally complex.
USD1 is being positioned as the dollar leg of that transaction.
The stablecoin could allow the asset and payment sides of a transaction to settle together onchain. This type of atomic settlement could reduce the need for intermediaries and potentially lower the amount of capital institutions must keep available to manage settlement delays.
Zak Folkman, co-founder and chief operating officer of World Liberty Financial, described the problem as a mismatch between the rapid growth of tokenized assets and the infrastructure used to move money alongside them.
That is the market USD1 is now targeting on Canton.
Why Canton Matters for World Liberty Financial
Canton is not a typical public blockchain aimed primarily at retail cryptocurrency trading.
The network has been developed around institutional finance, with a focus on allowing different applications to maintain privacy and permissioning while remaining interoperable with other parts of the network. Participants in a transaction can access the information relevant to them without necessarily exposing sensitive financial data across the entire network.
That model is particularly relevant for banks, asset managers and other institutions that cannot simply place all transaction information on a fully transparent public blockchain.
Related: Trump’s World Liberty Financial Gets Conditional OCC Approval for USD1 Bank
According to the announcement, more than $9 trillion in tokenized assets are issued or processed on Canton each month, while the network also handles significant volumes of tokenized U.S. Treasury activity.
Those figures help explain why World Liberty Financial is targeting the network.
USD1 is entering an ecosystem where tokenized assets are already being used for collateral, repo and treasury workflows. The stablecoin’s role could therefore extend beyond payments into the broader liquidity infrastructure supporting institutional financial applications.
Eric Saraniecki, co-founder and head of network strategy at Digital Asset, said the arrival of additional stablecoins gives institutions more flexibility in how they fund and settle transactions across applications.
For Canton, USD1 adds another settlement asset to the network. For World Liberty Financial, it provides access to a market focused on institutional blockchain adoption rather than purely crypto-native activity.
USD1 Looks to Expand Beyond the Crypto Market
The expansion also reflects a broader strategic shift in the stablecoin sector.
Stablecoins initially became popular as a way for cryptocurrency traders to move between volatile assets without leaving blockchain markets. Today, companies are increasingly competing to make stablecoins part of global payment systems, cross-border transfers, institutional settlement and tokenized securities markets.
USD1 is now attempting to establish a position within that larger transformation.
World Liberty Financial said USD1 has surpassed $4 billion in circulation since launching in March 2025. The stablecoin is backed by a reserve that includes short-term U.S. Treasurys, U.S. government money market funds, dollar deposits and other cash equivalents.
Related: Trump-Backed World Liberty Expands USD1 Utility With Gold, Oil and Stock Perpetuals
BitGo provides the issuance and custody infrastructure supporting USD1, according to the announcement, including the management of minting and redemption processes.
The Canton launch could give the stablecoin a new use case beyond exchanges and traditional crypto markets.
Instead of simply being used to buy and sell digital assets, USD1 could become part of the settlement infrastructure used when institutions trade tokenized financial products.
That distinction could become increasingly important as real-world asset tokenization grows.
The Race for Tokenized Asset Liquidity Is Heating Up
The broader RWA market is attracting banks, asset managers, blockchain companies and stablecoin issuers, all of which are competing to control different parts of the emerging infrastructure.
Some companies are focused on issuing tokenized versions of traditional assets. Others are building blockchains designed to host those assets. Oracle providers are supplying pricing data, while stablecoin issuers are competing to provide the liquidity needed to settle transactions.
USD1’s arrival on Canton places World Liberty Financial directly within that infrastructure race.
The company is not simply trying to increase the number of networks supporting its stablecoin. It is targeting a blockchain specifically built around institutional workflows where privacy, compliance and interoperability are major requirements.
Related: Justin Sun vs. World Liberty: Arbitration Fight Deepens in Multi-Million-Dollar WLFI Dispute
That could give USD1 a different growth path from stablecoins focused primarily on retail cryptocurrency trading.
The opportunity, however, will depend on whether institutions choose to use the stablecoin in meaningful volumes.
Stablecoin adoption is becoming increasingly competitive, with established issuers already holding significant positions in global crypto markets. Winning institutional settlement business will likely require more than simply being available on a blockchain. Liquidity, regulatory confidence, redemption mechanisms and integration with financial applications will all matter.
For World Liberty Financial, the Canton integration represents an effort to establish USD1 within one of the fastest-growing areas of blockchain finance.
The next phase of tokenization may not be determined solely by how many assets move onchain. It may also depend on how efficiently institutions can finance, trade and settle those assets once they arrive.
USD1’s launch on Canton suggests World Liberty Financial wants to become part of that settlement infrastructure. If institutional demand for tokenized assets continues to grow, the stablecoins powering the cash side of those transactions could become just as important as the blockchains hosting the assets themselves.
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