- World Liberty Financial launched USD1, a stablecoin pegged to the US dollar.
- USD1 is backed by US government securities and cash and launched on Ethereum and BNB Chain.
- The stablecoin aims for institutional-grade stability, with a total supply of approximately $3.5 million, and is not yet tradeable.
World Liberty Financial, a DeFi protocol founded in 2024 and backed by Donald Trump, unveiled USD1, a stablecoin pegged 1:1 to the US dollar. USD1 is designed to maintain stability through backing by US government securities, US dollar deposits, and other cash equivalents, ensuring each token is worth $1. The stablecoin is initially available on Ethereum and BNB Chain, two of the most established blockchain networks for DeFi applications.
USD1’s launch, with its political ties, could attract a new wave of investors, but it also sparks debate about the role of politics in crypto.
World Liberty Financial
World Liberty Financial (WLFI) was established with the mission to “Make crypto and America great by driving the mass adoption of stablecoins and decentralized finance.” The project, inspired by Donald Trump, positions him as “Chief Crypto Advocate,” with his sons—Donald Jr., Eric, and Barron—serving as “Web3 Ambassadors.”
Despite their titles, the company clarifies that no Trump family members or Trump Organization employees are part of its board or management, maintaining a non-political stance, though their advisory roles and token allocations (22.5 billion $WLFI tokens) suggest significant influence.
The project has raised $550 million through two public token sales, attracting notable investors like Chinese businessman Justin Sun, who spent at least $75 million on tokens and serves as an advisor. WLFI aims to empower users through user-friendly DeFi tools, focusing on lending, borrowing, and now stablecoins, positioning itself as a portal for crypto investment.
Details of USD1: Launch and Features
USD1’s launch on March 25, 2025, was confirmed through recent reports, with testing beginning this week. The stablecoin is not currently tradeable, and WLFI has warned users to beware of scams.
It has a total supply of approximately $3.5 million, minted on Ethereum and BNB Chain, with plans to expand to other protocols in the future. Each token is intended to maintain a $1 value, backed by a reserve portfolio audited regularly by a third-party accounting firm.
A key feature is its partnership with BitGo, the world’s largest independent qualified custodian, which provides custody services for the reserves. BitGo’s involvement, including through its BitGo Prime service, offers institutional clients deep liquidity and trading from regulated, insured custody. This collaboration enhances USD1’s credibility, aiming for institutional-grade stability and security, avoiding complex yield-generating mechanisms to prioritize clarity.
Stablecoins and Regulatory Landscape
The stablecoin market is booming, with major players like Tether (USDT) and USD Coin (USDC) holding billions in market capitalization. However, concerns about transparency and regulatory compliance persist, especially after past controversies.
USD1’s launch coincides with US lawmakers considering the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act, which moved out of the Senate Banking Committee on March 13, 2025, and is expected for a full floor vote soon. This regulatory push could favor USD1’s focus on compliance and security.
Stablecoins serve as a bridge between traditional finance and crypto, enabling seamless cross-border transactions and DeFi participation. With USD1’s backing by US government securities and cash, it aligns with efforts to ensure stability, potentially setting a new standard for the industry.
© 2024 Cryptopress. For informational purposes only, not offered as advice of any kind.
