Trump-Linked WLFI USD1 Stablecoin Scores Restaking Upgrade with Kernel DAO, Promising Dual Yields

World Liberty Financial (WLFI), the Trump-linked crypto venture, is fusing its USD1 stablecoin with Kernel DAO in a bold blockchain move, making it a restakeable asset, according to an X post on May 28.

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The partnership is a step forward in the evolution of stablecoin utility. This development allows USD1 holders to earn rewards and contribute to the economic security of decentralized applications.

This is a first-of-its-kind collaboration; Kernel DAO will allow users to restake their USD1 stablecoins on its platform. Once restaked, the stablecoins are used to provide economic security to third-party applications built on Kernel’s infrastructure.

In return, users receive Kernel points as a form of reward, creating a dual benefit for stablecoin holders: passive income and participation in decentralized security.

USD1, issued by World Liberty Financial, has largely been associated with conservative values and gained visibility due to its Trump family connections.

This move to open up the stablecoin for restaking marks a major shift toward broader ecosystem collaboration. It also reflects growing demand in the DeFi space for stable assets that can do more than just sit in wallets—USD1 is now positioned as an asset that can generate yield and utility at the same time.

This integration will also unlock a new dimension of productivity for stablecoin holders. Instead of keeping USD1 idle, users now have the opportunity to put their assets to work in a meaningful way.

By restaking USD1 on Kernel DAO, they contribute to the robustness and reliability of decentralized applications, supporting the network’s overall economic health.

The move is also huge for Kernel DAO, which expands its asset base and strengthens its offering as a next-generation security protocol. With the backing of a well-known stablecoin, the DAO gains a new layer of credibility and functionality, which could attract more developers and users to its platform.

As restaking gains traction, the integration of USD1 into Kernel DAO may pave the way for other stablecoins to follow suit.

Earlier this month, WLFI publicly rejected a Senate probe into its operations, dismissing the inquiry as politically motivated and lacking substance.

The public response came shortly after Senator Richard Blumenthal (D-CT), ranking member of the Senate Permanent Subcommittee on Investigations (PSI), revealed that his office had launched a preliminary inquiry into WLFI’s political connections and foreign investment sources on May 6.

The senator raised alarms over the stablecoin project’s governance, national security implications, and potential financial entanglements, particularly its ties to President Donald Trump.

In a formal letter, Blumenthal requested extensive documentation from both WLFI and Fight Fight Fight LLC, the company behind the Official Trump meme coin (TRUMP).

The letter alleges that these entities may have violated federal ethics laws by facilitating financial transactions involving foreign nationals facing prosecution or by creating potential conflicts of interest involving Trump.

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