World Liberty Financial's defy transactions raise suspicion and Hong Kong grants its first stable coin licenses.

This is Coin Desk Daily.

World Liberty Financial, the crypto venture, co-founded by the Trump family, has executed a series of defy transactions that raise questions about insider access and concentrated risk.

On chain records show WLFI pledged 5 billion of its own tokens on the Dolomite lending platform

to borrow $75 million in stable coins, draining the protocols USD1 pool, and sending more than

$40 million to Coinbase Prime.

Dolomite co-founder Corey Kaplan is an advisor to World Liberty Financial.

WLFI now accounts for roughly 55% of Dolomite's entire $835 million in supply liquidity.

The structural concern is that the USDA1 lending protocol is running at 93% utilization,

meaning ordinary depositors who lend USDA1 cannot all withdraw at once.

And if WLFI's token price drops sharply, forced liquidations could crash the price before

the collateral unwinds, leaving retail depositors holding bad debt.

U.S. inflation came in largely as expected in March, but the details tell two different

stories. The consumer price index rose 0.9% month over month, matching forecasts. This is driven almost entirely by surging energy costs tied to the Middle East conflict.

Year over year, CPI came in at 3.3% up sharply from February's 2.4. Bitcoin nudged up to $72,400 after the release, while stock futures posted

modest gains. Markets have now fully priced out any Fed rate cut this year. CME Fed Watch shows a 98.4%

chance the Fed holds at its late April meeting and 96.8% at mid-June. And Hong Kong granted its first

two stable coin issuer licenses to HSBC and Anchor

Financial, a standard chartered led group that includes Anamoka Brands. The HKMA assess 36 applications and

the decision to license note issuing banks first was deliberate. HSBC and standard chartered are two

of only three commercial banks authorized to print Hong Kong

dollar banknotes, a system dating back to 1846. The licenses come with one of the world's

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