Strategic Partnership Between Bithumb and Trump-Backed World Liberty Financial Announced

South Korean cryptocurrency exchange Bithumb has formalized a strategic partnership with World Liberty Financial (WLFI), a crypto venture associated with the Trump family, aiming to expand its international network and foster new business opportunities amidst heightened market interest and potential regulatory scrutiny.

The Event in Detail

On September 22, 2025, Bithumb, one of South Korea's largest cryptocurrency exchanges, signed a memorandum of understanding (MOU) with World Liberty Financial (WLFI). WLFI, founded by members of the Trump family, is the issuer of the USD1 stablecoin, which currently boasts a market capitalization of $3 billion. The partnership ceremony, held at the Bithumb Financial Center in Seoul, was attended by Bithumb CEO Lee Jae-won and World Liberty co-founder Zak Folkman, along with other executives. The USD1 stablecoin had already secured listings on Bithumb and Upbit earlier in the month, further solidifying its presence in the Korean market. The primary objectives of this collaboration are to jointly explore new business opportunities and enhance global investor trust in the digital asset space.

Financial Mechanics and Business Strategy

World Liberty Financial (WLFI) operates as a decentralized finance protocol and blockchain firm, established in September 2024, with its initial token, WLFI, launched in October 2024. The USD1 stablecoin is fully collateralized by U.S. Treasuries and cash equivalents, a model that contributed to its resilience during the 2025 crypto market downturn, maintaining its dollar peg and reaching a $2.5 billion market capitalization by September 1, 2025. This positions USD1 among the top six stablecoins globally, with listings on major exchanges like Binance and Coinbase. WLFI's strategic roadmap includes the launch of a debit card and a retail application, with the debit card slated for integration with Apple Pay, allowing direct linkage of USD1 for everyday transactions. The retail app is envisioned as a blend of peer-to-peer payments and lightweight trading tools, described by its co-founder as "Venmo meets Robinhood." WLFI's stated mission is to remain chain-agnostic, focusing on building cross-platform products rather than developing its own blockchain.

Bithumb, ranking as the second-largest crypto exchange in South Korea and 19th globally by trading volume, seeks to leverage this partnership to bolster its international competitiveness and strategic network. Korea's cryptocurrency market capitalization exceeded 100 trillion won ($72 billion) in 2025. Bithumb CEO Lee Jae-won stated that the cooperation marks an important milestone for enhancing the exchange's global competitiveness.

Market Implications

This collaboration signifies an increasing trend of established financial and political entities engaging with the cryptocurrency sector, potentially accelerating mainstream adoption of digital assets. The partnership is expected to increase visibility and potential trading volume for both Bithumb and the USD1 stablecoin, potentially attracting politically aligned investors. However, the involvement of the Trump family in WLFI has generated considerable debate regarding potential conflicts of interest and increased regulatory scrutiny. Democratic lawmakers and ethics experts have raised concerns, citing the Trump family's reported 60% stake and 75% claim on net revenues from WLFI token sales. Critics suggest that this financial interest could motivate political influence on regulatory bodies, potentially undermining investor protections. Instances such as the Securities and Exchange Commission (SEC) reportedly pausing an enforcement case against a major WLFI investor have been cited as evidence of possible favoritism. The $2 billion investment into USD1 from MGX, an Abu Dhabi-backed firm, has been characterized by some as "foreign policy for sale," further escalating concerns. The partnership also occurs amidst discussions in Congress regarding stablecoin legislation, such as the GENIUS Act, which mandates 1:1 reserve backing for U.S. stablecoins and proposes oversight by the Office of the Comptroller of the Currency (OCC) and the Federal Reserve. The political ties of USD1's issuer could influence or be influenced by such legislative developments. Bithumb itself has navigated recent regulatory changes, having scaled back its crypto lending services due to investor risk concerns, indicating a proactive approach to evolving regulatory landscapes in South Korea.

Broader Context

The partnership between Bithumb and World Liberty Financial underscores a complex interplay between traditional political influence, emerging digital finance, and global regulatory frameworks. While promoting innovation and expanding market reach, such alliances also draw intense scrutiny regarding transparency, market integrity, and the potential for undue influence. The market sentiment surrounding this development remains uncertain to cautiously bullish, balancing the potential for increased institutional engagement against the risks associated with political affiliations and regulatory challenges. The case highlights the ongoing evolution of the Web3 ecosystem as it integrates with broader geopolitical and economic structures, emphasizing the critical need for clear regulatory guidelines and robust oversight to ensure investor protection and market stability.