Plume Network collaborates with WLFI: Leveraging USD1 stablecoin to drive RWAfi growth and open a new chapter in institutional-level asset tokenization.

In the realm of Real World Asset Financing (RWAfi), Plume Network is taking a crucial step forward. Plume Network has officially added USD1 (a stablecoin backed by U.S. Treasury bonds and their cash equivalents) as the primary reserve for its native stablecoin pUSD. This collaboration comes at a time when Plume Network is establishing a strategic alliance with USD1 issuer World Liberty Financial (WLFI), aimed at promoting the development of RWAfi through the establishment of institutional-grade stablecoin infrastructure. This partnership not only brings USD1 into Plume's native ecosystem, unlocking scalable DeFi liquidity and collateral but also heralds the beginning of a new chapter in institutional-grade asset tokenization.

1. Plume Network: A Pioneer and Innovator in the RWAfi Space

Plume Network is a blockchain platform dedicated to the tokenization of real-world assets (RWA) and officially launched its Genesis mainnet on June 5. The company announced that its network is now live and has deployed RWA worth $150 million on-chain. Plume Network is an EVM-compatible Layer 2 blockchain that allows real-world assets to operate within the Decentralized Finance ecosystem.

Plume Network's modular network allows users to stake stablecoins into institutional-grade vaults and earn yield-generating tokens. These tokens can be reused in DeFi protocols for lending and yield generation. According to co-founder and CEO Chris Yin, the protocol redefines tokenized real-world assets as composable and yield-generating components, behaving similarly to native crypto assets.

Plume Network's flagship product, Nest Vault, supports permissionless stablecoin staking. The platform offers audited and highly liquid assets, covering consumer credit, corporate debt, solar power plants, and medical reimbursement claims. Users can leverage these RWA tokens to borrow additional capital within the same ecosystem and enhance yield potential.

2. WLFI and USD1 stablecoin: The cornerstone of institutional-grade RWAfi

The core of this cooperation is the USD1 stablecoin. USD1 is the first U.S. Treasury-supported asset directly integrated into a blockchain-native stablecoin framework. This stablecoin can be exchanged for USD on a 1:1 basis and is issued by regulated trusts and money transfer platforms. Plume noted in the announcement that USD1 has been considered for high-value settlements, such as the $2 billion investment by the UAE-backed MGX in cryptocurrency exchanges.

World Liberty Financial has chosen Plume as its multi-chain expansion partner, with a fee of 1 USD. This deployment marks a new milestone, bringing stablecoins into its specially built RWAfi ecosystem. One of WLFI's main goals is to enhance the accessibility of decentralized finance while maintaining clear regulations. The organization emphasizes the importance of transparency and security in the development of next-generation financial tools. With this expansion, USD1 now plays a critical role in connecting traditional financial infrastructure and on-chain liquidity.

III. The Impact of Cooperation and Market Trends

The support for USD1 by Plume enhances the stability and growth potential of its ecosystem. Institutional users can now choose from various collateral options and can leverage pUSD's composability in native DeFi platforms (such as Nest, Plume's staking protocol). The support for USD1 will create new yield opportunities and can leverage RWA positions through stable collateral.

The ecosystem of this network includes over 200 projects built on its EVM-compatible platform. The addition of USD1 helps to more easily obtain dollar-backed liquidity within a regulated framework. Through this collaboration, institutional and retail users can participate in the RWA market without relying on yield-generating mechanisms that often come with risks.

It is worth noting that the timing of this release coincides with a strong market trend. The global stablecoin market has grown by 46% year-on-year, reaching USD 253 billion. USD1 targets this expanding market, offering compliant and transparent products to meet the needs of institutional-grade capital.

IV. Regulatory Participation and Strategic Investment

This collaboration also highlights Plume's ongoing cooperation with U.S. regulatory agencies. The network has been coordinating activities in Washington, D.C., such as working with the U.S. Securities and Exchange Commission (SEC) cryptocurrency working group. These efforts aim to help achieve a larger goal of integrating compliant risk assets (RWA) into the decentralized finance system through the network.

The development of Plume Network has received support from many major investors. In the seed round financing led by Haun Ventures, the startup raised $10 million and secured $20 million in Series A funding with joint investments from Galaxy and Brevan Howard. Additionally, in April this year, Apollo Global made a strategic investment in the project, followed by support from YZi Labs.

Plume Network announced at launch that it has integrated with mainstream DeFi platforms such as Morpho, Curve, Matrixdock, and Orderly. The company stated that the ecosystem currently has over 200 projects focused on Real World Asset Financing (RWAfi). Partners also include Mercado Bitcoin, which earlier this year assisted in the tokenization of $40 million in Brazilian assets.

Conclusion:

The collaboration between Plume Network and World Liberty Financial marks an important milestone in the RWAfi space. By using USD1 stablecoin as the reserve for its native stablecoin pUSD, Plume not only enhances the stability and liquidity of its ecosystem but also paves the way for on-chain applications of institutional-grade RWA. With the regulatory environment gradually clarifying and the market's growing demand for RWAfi, Plume Network is expected to play an increasingly important role as a bridge connecting traditional finance and Decentralized Finance.