Former U.S. President Donald Trump’s crypto venture, World Liberty Financial, is making waves again with the announcement of its own stablecoin, USD1. Designed to maintain a 1:1 value with the U.S. dollar, USD1 will be fully backed by U.S. Treasuries, dollars, and cash equivalents, ensuring stability and security for users.
A Bold Move in the Stablecoin Market
Stablecoins play a crucial role in the $2 trillion crypto market, acting as a bridge between digital assets and traditional finance. With over $237 billion in stablecoins already in circulation, USD1 will enter a competitive space dominated by giants like Tether (USDT) and Circle’s USDC.
However, World Liberty Financial isn’t just launching another digital dollar—it’s positioning USD1 as an institutional-grade asset. According to Zach Witkoff, co-founder of World Liberty, the stablecoin is designed to support “sovereign investors and major institutions” for secure, cross-border transactions.
Security & Transparency: BitGo Steps In
To ensure credibility, USD1’s reserves will be held in custody by BitGo, a well-known U.S.-based crypto custody firm. BitGo’s prime brokerage services will provide liquidity and trading support, helping USD1 gain traction among large investors. Additionally, a third-party firm will audit USD1’s reserves, though specific details about the auditor or audit frequency haven’t been disclosed.
Trump’s Crypto Push and Potential Conflicts
Trump, who campaigned as a “crypto president”, has promised to revamp U.S. crypto regulations and roll back restrictions imposed under the Biden administration. While his deep involvement in the crypto space excites supporters, critics argue that it raises ethical concerns. Some believe his direct financial interests in $WLFI (World Liberty’s token) and USD1 could present potential conflicts if he shapes future U.S. crypto policies.
Launch on Ethereum & Binance Smart Chain
USD1 will initially be available on Ethereum and Binance Smart Chain, with plans to expand to more blockchains over time. This move ensures that the stablecoin will be widely accessible and easy to integrate into existing DeFi platforms and exchanges.
However, Binance’s involvement raises some questions. The exchange’s former CEO, Changpeng Zhao (CZ), was sentenced to four months in a U.S. prison after pleading guilty to violating money laundering laws. Binance also paid a $4.3 billion fine for failing to report suspicious transactions linked to criminal activity. Despite this, Binance remains one of the world’s most influential blockchain ecosystems, making it a strategic choice for USD1’s launch.
The Bigger Picture: Can USD1 Compete?
Launching a stablecoin is one thing—getting people and institutions to adopt it is another. Kevin Lehtiniitty, CEO of Borderless.xyz, warns that challenging USDT and USDC won’t be easy. These two stablecoins already dominate the market and have extensive adoption across crypto exchanges, DeFi protocols, and payment networks.
“The real question is whether the President is competing with American businesses or looking to partner with them,” Lehtiniitty said.
Final Thoughts
World Liberty Financial’s stablecoin launch signals a new phase in Trump’s crypto ambitions. USD1’s success will depend on adoption, regulation, and institutional backing. While the project has already secured $550 million from its $WLFI token sale, its long-term viability will hinge on trust, transparency, and regulatory clarity.
With the 2024 election in the rearview mirror, Trump’s crypto moves will likely remain under intense scrutiny—especially as his administration shapes the future of U.S. crypto policy.
