Donald Trump’s crypto company, World Liberty Financial, announced it will launch a dollar-backed stablecoin. The news comes after the firm raised over $500 million from selling another digital token.
Donald Trump’s cryptocurrency venture, World Liberty Financial, announced plans to launch USD1, a dollar-pegged stablecoin fully backed by U.S. Treasuries, cash, and cash equivalents. The company stated that USD1 is designed to maintain a 1:1 peg with the U.S. dollar, similar to major stablecoins like Tether (USDT) and USDC.
Stablecoin Market Growth & Profit Potential
Stablecoins have become a critical part of the crypto ecosystem, facilitating trading, cross-border payments, and liquidity. According to CoinGecko, the total circulating supply of stablecoins exceeds $237 billion.
With rising interest rates, stablecoin issuers have seen massive profits—Tether reported over $13 billion in earnings last year. World Liberty aims to capitalize on this demand, targeting sovereign investors and institutions for cross-border transactions.
Reserve Backing & Audits
World Liberty claims USD1 will be fully reserve-backed, with holdings regularly audited by a third-party accounting firm—though it did not disclose the auditor’s name or a launch date.
Trump’s Crypto Push & Controversy
Founded just two months before Trump’s 2024 election win, World Liberty is backed by Trump, his three sons, and real estate mogul Steve Witkoff (father of co-founder Zach Witkoff and Trump’s Middle East envoy).
Trump has positioned himself as a “crypto president,” vowing to loosen regulations imposed under the Biden administration. However, his crypto ventures—including a meme coin launched earlier this year—have raised ethics concerns over potential conflicts of interest.
$550M Fundraising & Competition
Last week, World Liberty raised 550million∗∗throughits∗∗550million∗∗throughits∗∗WLFI token sale. However, experts warn that USD1 will face fierce competition from established players like Tether and Circle (USDC issuer).
Kevin Lehtiniitty, CEO of Borderless.xyz, noted:
“Launching a stablecoin is easy, but building adoption is hard. Will Trump’s venture compete with U.S. businesses or seek partnerships?”
Custody & Blockchain Launch
- BitGo, a California-based custody firm, will hold USD1’s reserves and provide institutional liquidity.
- USD1 will debut on Ethereum and Binance Smart Chain (BSC), with plans to expand to other blockchains.
Binance Partnership & Legal Troubles
BSC, launched in 2020, is the fourth-largest blockchain by asset value (per CoinGecko). However, Binance’s reputation is marred by legal issues—its founder, Changpeng Zhao (CZ), was sentenced to four months in prison for money laundering violations, and the exchange paid a $4.3 billion fine for failing to report suspicious transactions.
A Binance spokesperson did not immediately comment on the partnership with World Liberty.
Outlook
World Liberty’s USD1 enters a crowded stablecoin market, with success depending on regulatory approval, institutional adoption, and trust in its reserves. Given Trump’s influence and the project’s backers, it could gain traction—but legal and competitive hurdles remain.
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