Trump’s World Liberty Financial to Launch Dollar-Pegged Stablecoin
Crypto Venture Secures $550 Million in Initial Funding
LONDON, March 25, 2025 — Donald Trump’s crypto venture, World Liberty Financial, has announced plans to launch a new dollar-pegged stablecoin known as USD1. This initiative follows the successful fundraising of over $550 million through the sale of a digital token, $WLFI. The announcement was made in a statement from the company on Tuesday.
Details of USD1
The USD1 stablecoin will be fully backed by U.S. Treasuries, U.S. dollars, and other cash equivalents, and is designed to maintain a consistent value of one dollar. This pegging is expected to position USD1 competitively in an ever-growing market of stablecoins, currently valued at over $237 billion according to data from CoinGecko.
Zach Witkoff, co-founder of World Liberty, pointed out the utility of USD1 for "sovereign investors and major institutions," emphasizing its potential for facilitating seamless and secure cross-border transactions. The company has also stated that the reserves backing USD1 will undergo regular audits by a third-party accounting firm, although specifics about the auditing firm and the launch date remain undisclosed.
Competitive Landscape
The launch of USD1 enters a competitive market that includes well-established dollar-pegged stablecoins such as Tether and USD Coin (USDC). These coins serve as integral components of the cryptocurrency trading landscape, acting as a bridge for transactions between cryptocurrencies and fiat currencies. Kevin Lehtiniitty, CEO of payments infrastructure firm Borderless.xyz, acknowledged that while launching a stablecoin may be straightforward, gaining ecosystem adoption presents a greater challenge. He posed critical questions regarding whether World Liberty’s initiative would compete against existing businesses or seek partnerships with them.
Backing and Infrastructure
World Liberty has partnered with California-based BitGo to hold the reserves for USD1. BitGo will offer prime brokerage services, providing institutional clients with access to substantial liquidity for trading. The stablecoin is set to be launched on both the Ethereum and Binance Smart Chain blockchains, with intentions to expand to additional blockchain platforms in the future.
The Binance Smart Chain, which launched in 2020, ranks as the world’s fourth-largest blockchain by asset value. This partnership comes amid scrutiny of Binance, especially following its founder’s recent legal issues in the U.S., including a prison sentence for money laundering violations.
Trump’s Broader Crypto Ambitions
World Liberty Financial was established shortly before Trump’s election victory in 2016, with backing from Trump and his three sons, along with prominent real estate entrepreneur Steve Witkoff. Trump has previously made claims to be a "crypto president," vowing to reform U.S. regulations surrounding cryptocurrency and reverse the regulatory crackdown that occurred during the Biden administration. However, Trump’s crypto ventures have also faced backlash from ethics experts, who warn of potential conflicts of interest.
As the cryptocurrency market continues to evolve, the success of USD1 will largely depend on its ability to carve out a niche in a space already dominated by major players. The upcoming months will determine how well World Liberty Financial can navigate these challenges and establish USD1 as a reputable stablecoin option.
Conclusion
As the landscape of cryptocurrency continues to shift and grow, the introduction of USD1 by World Liberty Financial represents a significant development. Stakeholders will be watching closely to see how this new player integrates into the existing market and whether it can meet the high expectations set by its ambitious goals.
For more updates on the developments in the crypto sector and World Liberty’s initiatives, stay tuned.
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