World Liberty Financial, the crypto venture backed by Donald Trump, disclosed its new stablecoin Monday. Called USD1, it’s pegged to the U.S. dollar and backed by short-term treasuries, dollar deposits, and cash equivalents. The stablecoin will initially be available on Ethereum and Binance Smart Chain networks. With blockchain technology compatibility, USD1 aims to enhance the financial ecosystem and institutional adoption of digital assets. Pretty standard stuff, but with the Trump name attached.
The company has raised over $550 million through token sales. Not too shabby for a venture launched just last month. Trump himself serves as “chief crypto advocate” – whatever that means. His sons are involved too: Barron as some kind of “DeFi visionary” (he’s 18), while Eric and Donald Jr. snagged titles as “Web3 ambassadors.” Must be nice to have options.
Co-founder Zach Witkoff isn’t just any crypto bro. He’s the son of Steve Witkoff, Trump’s Special Envoy to the Middle East. Connections matter, folks. BitGo, a California-based firm, will hold the reserves and provide support for institutional clients. USD1 is specifically targeting sovereign investors and major financial institutions for seamless cross-border transactions. They’re planning regular third-party audits of the reserve portfolio. Trust, but verify.
The stablecoin market is huge – over $200 billion and growing. Transfers hit $27.6 trillion in 2024. As a fiat-backed stablecoin, USD1 follows the most common model in the market, requiring regular audits to verify its 1:1 backing. USD1 will compete with giants like Tether and USDC. Their biggest investor? Justin Sun, founder of Tron. They’ve also partnered with Crypto.com for Trump Media & Technology Group. Ambitious.
Trump’s administration has made crypto a “week one priority.” They’ve formed a crypto working group, created a Strategic Bitcoin Reserve, and appointed David Sacks as White House Crypto Czar. The man promised to make America the “crypto capital of the planet.” He means business.
Regulatory clarity might actually happen. Senator Tim Scott and Representative French Hill are working on stablecoin legislation. The House is close to reintroducing a market structure bill.
World Liberty Financial wants to enable stablecoin purchases at local stores, eliminate banks as middlemen, and expand USD1 to other blockchains. Big dreams. We’ll see if they deliver.
