Today in crypto, WLFI fell to a record low after it was revealed that the project used its own tokens as collateral to take a loan, Bitcoin and the broader cryptocurrency market remained resilient despite hotter-than-expected US inflation data, with the Consumer Price Index recording its largest monthly increase since 2022. Meanwhile, Hong Kong has issued its first stablecoin licenses, approving Anchorpoint Financial and HSBC’s local banking arm under its new regulatory framework.
Trump-linked WLFI hits new low as token-backed loan triggers concern
WLFI, the native token of the Donald Trump–backed World Liberty Financial platform, sank to an all-time low on Saturday as crypto users expressed concerns after revelations that the project used a large amount of its own tokens to take out loans.
The token hit a new low of around $0.07714 on Saturday, down 83% from its peak of $0.46 reached last September, according to data from CoinMarketCap. WLFI is currently at $0.07879, down by 4.66% over the past day.
The downturn came after it was revealed that wallets linked to World Liberty Financial deployed substantial WLFI holdings as collateral on Dolomite, a decentralized lending platform co-founded by the project’s chief technology officer, Corey Caplan.
Onchain data from Arkham shows that a wallet linked to World Liberty Financial deposited around 5 billion WLFI tokens on Dolomite. The wallet then used the tokens as collateral to borrow $75 million in USD1 and USDC (USDC) stablecoins, later transferring more than $40 million to Coinbase Prime.
Inflation spikes, rate-cut hopes fade
US consumer prices accelerated sharply in March — the first full month reflecting the energy surge following the closure of the Strait of Hormuz — though crypto markets remained largely unfazed.
According to the Bureau of Labor Statistics, the Consumer Price Index rose 0.9% month over month, marking the largest increase in nearly four years. On an annual basis, inflation came in at 3.3%, slightly below expectations.
Bitcoin (BTC) traded above $73,000 following the report, while Ether (ETH) climbed toward $2,300.
Still, the hotter inflation print has all but eliminated the likelihood of a rate cut at the upcoming Federal Open Market Committee meeting, with futures markets pricing in less than a 2% chance of easing in April. Markets are divided on whether the Fed’s next action will be a rate cut or a rate hike as policymakers struggle to contain inflation.
Hong Kong grants first stablecoin licenses to Anchorpoint and HSBC
Hong Kong has granted its first stablecoin issuer licenses, approving Anchorpoint Financial and the Hongkong and Shanghai Banking Corporation under a new regulatory framework overseen by the Hong Kong Monetary Authority (HKMA).
The HKMA announced the initial batch of licensees on Friday, marking the first approvals under its stablecoin regime.
Anchorpoint Financial is the stablecoin joint venture formed by Standard Chartered Bank (Hong Kong), Animoca Brands and Hong Kong Telecommunications. The Hongkong and Shanghai Banking Corporation Limited is HSBC’s Hong Kong-based banking entity and one of the city’s three note-issuing banks.
The first approvals highlight Hong Kong’s cautious approach, with regulators appearing to favor bank-linked and institution-backed issuers in the regime’s opening phase.
The announcement comes after weeks of unconfirmed reports about potential licensees and a missed March timeline, marking a cautious start to Hong Kong’s stablecoin licensing rollout. HKMA Chief Executive Eddie Yue said in February that a very small number of issuers would be licensed in March, a timetable the HKMA ultimately missed before granting the first approvals.
