World Liberty Financial announced the launch as Solana’s first market. With supplier incentives in WLFI and KMNO tokens.
This is while Kamino highlighted USD1’s full backing by U.S. government money market funds and cash equivalents.
What Is USD1 and How Does It Work
USD1 is a stablecoin pegged one to one to the U.S. dollar, meaning each token can be redeemed for exactly one dollar. Issued by World Liberty Financial, a DeFi project tied to the Trump family, it relies on safe assets like Treasury funds to maintain stability, much like everyday bank savings but on the blockchain. Users deposit USD1 into Kamino, a popular Solana lending protocol, to supply liquidity or borrow other assets against it. Suppliers earn rewards paid in WLFI and KMNO tokens, Solana’s governance and liquidity tokens, creating an incentive to participate early.
A real world example shows the appeal: imagine a freelancer in Latin America holding USD1 to avoid local currency swings, then lending it on Kamino for 5% yield while borrowing stable SOL for trading, all settling in seconds.
USD1 is now live on @kamino.
Solana’s first lending market with supplier incentives in $WLFI and $KMNO.
Supply. Borrow. Access incentives.
USD1 szn is here. 🦅☝️ https://t.co/UBMWvyyF88
— WLFI (@worldlibertyfi) January 19, 2026
This integration taps into Solana’s explosive DeFi growth. This is where total value locked hit over 10 billion dollars last quarter, fueled by low fees and high speed. A recent trend is politically branded stablecoins gaining traction, with USD1 following PYUSD from PayPal as issuers blend real world names with blockchain utility. Credible data from DeFi trackers shows Kamino’s TVL surpassing 2 billion dollars, positioning it as Solana’s top lending hub where new assets like USD1 can quickly draw millions in deposits.
More About Solana’s Ecosystem
Solana’s stablecoin users have surged to a record 5 million wallets. This marks an all-time high that underscores the network’s booming adoption. This milestone reflects how everyday users, traders, and institutions now rely on stablecoins. For fast, low-cost transactions on Solana, where fees often stay under a penny.
💵 $SOL stablecoin users had hit an all-time high at 5 MILLION wallets!
That’s 5M people actually using crypto for payments, not speculation.
And Solana’s super low gas costs and transaction speeds make it feel like magic.
We’re excited that everything from gaming to… pic.twitter.com/Pdg1o4k9tv
— Demether (@DemetherDeFi) January 20, 2026
The growth ties directly to DeFi platforms like Kamino and Jupiter, where stablecoins fuel lending, borrowing, and swaps, drawing in newcomers who value speed over Ethereum’s higher costs. With stablecoin supply on Solana hitting $15 billion recently, up 200% year-over-year, this user explosion signals real utility beyond speculation, positioning the chain as a go-to hub for on-chain finance.
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