World Liberty Financial, a decentralized finance venture supported by former President Donald Trump and his family, has introduced a stablecoin named USD1. This new stablecoin is pegged to the U.S. dollar and backed by short-term U.S. government treasuries, U.S. dollar deposits, and other cash equivalents. It will soon be available on the Ethereum and Binance Smart Chain networks.
According to Zach Witkoff, co-founder of World Liberty Financial, USD1 offers the power of decentralized finance (DeFi) with the credibility and safeguards of traditional finance. The company aims to provide a digital dollar stablecoin that sovereign investors and major institutions can confidently integrate into their strategies for secure cross-border transactions.
The market cap for dollar-backed stablecoins has grown more than 46% in the past year, according to CryptoQuant. Tether (USDT) and Circle’s USDC have long dominated this market. Since its launch in October, World Liberty Financial has raised $550 million through two token sales, including $250 million announced last week. Entities connected to the Trump family could receive up to 75% of the venture’s net revenue.
The rise of World Liberty Financial coincides with the Trump administration’s accelerating crypto agenda. Earlier this month, President Trump signed an executive order to create a Strategic Bitcoin Reserve. Stablecoins are increasingly seen as a critical part of the market, used for trading on exchanges and as collateral in DeFi.
World Liberty Financial joins a growing list of companies entering the stablecoin market, including PayPal and Gemini. In December, Ripple announced its new stablecoin, called ripple USD (RLUSD). Stablecoin legislation is expected to pass this year, with the GENIUS Act recently advancing out of the Senate banking committee with bipartisan support.
— news from CNBC