By World Liberty Financial (WLFI), a decentralized finance protocol backed by the Trump family, has confirmed speculations about the launch of a dollar-backed stablecoin.
According to an official press release on March 25, the defi protocol has officially acknowledged the launch of USD1, a stablecoin pegged 1:1 to the US dollar.
Designed with institutions in mind, USD1 is fully backed by short-term US Treasury bonds, cash deposits, and other cash equivalents to ensure maximum stability and trust.
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Talk of a potential stablecoin from WLFI began swirling around March 23, after eagle-eyed users on X spotted test transactions involving a token called “World Liberty Financial USD (USD1)” on both Ethereum and BNB Chain.
On-chain data also pointed to the involvement of BitGo and prominent market maker Wintermute, further fuelling speculation about an upcoming launch.
Today’s announcement lays speculation to rest, with BitGo officially confirmed as the custodian of USD1’s reserves.
The digital asset security giant will handle custody, while its brokerage arm, BitGo Prime, will provide trading and liquidity support for the stablecoin.
Interestingly, while blockchain sleuths previously spotted wallet activity linked to Wintermute, the market maker wasn’t mentioned in the official release, leaving its exact role in the stablecoin’s rollout unclear for now.
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WLFI Co-founder Zach Witkoff explained the initiative’s primary goal, saying USD1 was built to offer what “algorithmic and anonymous crypto projects cannot.”
“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,” he added.
The release also stresses USD1’s focus on stability, which it reportedly achieves by avoiding complex yield-generating mechanisms.
Developers believe the clarity and security offered by the stablecoin would help fuel broader institutional adoption.
Commenting on the development, Mr. Himanshu Maradiya, Founder & Chairman of CIFDAQ, told Invezz that the launch was a “significant milestone.”
Stablecoins like USDT, with a market cap of $143 billion, have proven their value as volatility shelters, and USD1 could follow suit […] We see this as a bold step toward integrating digital assets into broader financial systems, positioning the industry for a future of innovation and opportunity.
WLFI raised $590 million despite controversies
World Liberty Financial launched on September 16, 2024, with a mission to promote DeFi and stablecoins.
Backed by none other than Donald Trump and his sons, Eric, Donald Jr., and Barron, the project positioned itself as a bold leap toward financial innovation and a step away from the old-school banking system.
So far, WLFI has raised a whopping $590 million to fuel its vision of decentralized finance.
A big chunk of that came early on—$300 million from its first token sale in October, where it sold 20 billion WLFI tokens at $0.015 each.
The sale made up 25% of the total supply and quickly put the project on the radar.
Since then, a few big names have jumped in. Tron founder Justin Sun backed the project with a $30 million investment, grabbing 2 billion tokens at the same launch price.
Web3Port followed in January, throwing in $10 million, while in February, Oddiyana Ventures reportedly made an undisclosed investment.
Nevertheless, some in the crypto community have questioned whether the project brings anything truly new to the table or if it’s just a high-gloss cash grab.
The team recently fended off negative media attention after a report from The Wall Street Journal and Bloomberg suggested the Trump family might be eyeing a stake in Binance US through WLFI.
However, in a statement posted to X, WLFI called the coverage “clickbait” and “politically motivated,” urging followers to look past the noise and focus on its mission to “democratise finance.”
Some in the industry have also called out the project’s high fees and reinvestment strategies. Yet the project has continued to expand its crypto portfolio, most recently injecting $3 million into layer 2 solution Mantle Network’s MNT token.
Other tokens the project has invested in include Ethereum, Wrapped Bitcoin, TRX, LINK, AAVE, ENA, MOVE, ONDO, and SEI.
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