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World Liberty Financial, a decentralized finance protocol backed by President Donald Trump, confirmed on Tuesday that it intends to launch its own U.S. dollar-backed stablecoin on both Ethereum and Binance’s BNB Chain.
With Trump back in the Oval Office and congressional Republicans racing to pass a bill legalizing stablecoins, it appears the World Liberty team feels the time is right for the president himself to enter the increasingly crowded—and profitable—stablecoin sector.
World Liberty Financial Unveils USD1 Stablecoin
President Trump’s crypto portfolio continues to expand.
Called World Liberty Financial USD (USD1), the stablecoin is currently compatible with trading on Ethereum, one of the largest blockchain networks for decentralized finance, and on BNB, a blockchain developed by crypto exchange giant Binance.
USD1 is anchored to $1 and will be collateralized with short-term U.S. Treasuries, U.S. dollar deposits, and other cash equivalents. The reserves will be custodied at BitGo, while BitGo Prime, the firm’s brokerage service, will provide liquidity for the token.
“USD1 provides what algorithmic and anonymous crypto projects cannot — access to the power of DeFi underpinned by the credibility and safeguards of the most respected names in traditional finance,” said Zach Witkoff, WLFI co-founder. “We’re offering a digital dollar stablecoin that sovereign investors and major institutions can confidently integrate into their strategies for seamless, secure cross-border transactions.”
Stablecoins typically serve as key on-ramps and off-ramps between crypto and traditional financial markets. They allow users to park on-chain funds in currencies that remain fixed in value even during periods of high volatility in the crypto markets. Stablecoins are also big business. Tether, the world’s largest stablecoin issuer, reported a $13 billion profit last year.
The rollout of USD1 on the BNB Chain follows recent reports that the Trump family held discussions with Binance about acquiring a stake in the exchange’s U.S. arm and granting Changpeng Zhao a presidential pardon. Zhao, however, refuted the claims.
Stablecoin Legislation Starts To Take Shape
The launch of the USD1 stablecoin comes as US lawmakers mull passing the Guiding and Establishing National Innovation for US Stablecoins, or the GENIUS Act. The US Senate Banking Committee passed the bill on March 13, but it must still pass in both chambers of Congress before it is taken to President Trump and ultimately signed into law.
Bo Hines, the executive director of the President’s Council of Advisers on Digital Assets, recently explicitly said he expects the GENIUS bill on Trump’s desk in the next two months.
English (US)