Trump-Backed Crypto Venture Launches USD1 Stablecoin

World Liberty Financial (WLFI), backed by Donald Trump and his relatives, has introduced USD1, a U.S. dollar-pegged stablecoin, aiming to provide a safe digital currency for institutions and investors. USD1 will be collateralized by short-term U.S. government bonds, U.S. dollar deposits, and other cash equivalents, with reserves held by BitGo and providing liquidity. It will be released on Ethereum and Binance Smart Chain, with further expansion plans.

WLFI, which has raised more than $550 million in earlier token sales and has investors such as Justin Sun, seeks to merge DeFi strengths with traditional finance credibility using USD1, enabling safe cross-border transactions. Organizations linked to the Trump family may be awarded up to 75% of the venture's net earnings.

The launch of USD1 comes amidst the Trump administration's pro-crypto push, including the forming of a Strategic Bitcoin Reserve, and places WLFI in the expanding stablecoin market. Success for USD1 would impact adoption by traders and institutions looking for stable digital currency options for trading and DeFi transactions.