Trump-Backed World Liberty Financial Unveils the USD1 Stablecoin

World Liberty Financial (WLFI), an active player in the crypto field, has officially announced the launch of its new stablecoin, USD1, signaling a bold entry into the rapidly expanding pegged-assets market.

The new stablecoin, pegged to the U.S. dollar, positions itself as a financial product designed to attract institutional investors and provide a “robust”, “secure” digital dollar alternative.

A Stablecoin with Traditional Finance Credibility

Zach Witkoff, co-founder of World Liberty Financial, emphasized the unique positioning of USD1, stating it “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.”

The stablecoin will be fully backed by short-term U.S. government treasuries, U.S. dollar deposits, and other cash equivalents, offering a level of transparency and stability that sets it apart from more volatile cryptocurrency offerings. Notably, BitGo, an established digital asset financial services company, will provide custody services for the token’s reserves, further enhancing its institutional appeal.

Meet USD1 — the stablecoin your portfolio’s been waiting for.

Built for institutions and retail alike. Backed by dollars. Custodied by BitGo.
No games. No gimmicks. Just real stability.https://t.co/vXPbZe0GPn

— WLFI (@worldlibertyfi) March 25, 2025

Strategic Launch in a Booming Market

The timing of USD1’s launch is particularly strategic. The stablecoin market has experienced remarkable growth, with dollar-backed stablecoins expanding more than 46% in the past year, according to CryptoQuant. Currently dominated by giants like Tether and Circle’s USDC, the market is primed for innovative entrants.

USD1 will initially be available on two major blockchain networks: Ethereum and BNB Chain, with plans to expand to additional networks in the future.

Political and Financial Implications

The launch aligns closely with the Trump administration’s emerging crypto-friendly policies. Earlier this month, President Trump signed an executive order to create a Strategic Crypto Reserve, and Treasury Secretary Scott Bessent has been vocal about using stablecoins to preserve the U.S. dollar’s global dominance.

Although the Strategic Crypto Reserve did not fulfill market’s expectations, the USD1 stablecoin might pose an interesting product for institutional investors.

At a recent Digital Asset Summit, Trump himself addressed the potential of stablecoins, suggesting they will “help expand the dominance of the U.S. dollar” and “unleash an explosion of economic growth.”

Financial Performance and Backing

Since its October launch, World Liberty Financial has already raised an impressive $550 million through token sales, attracting over 85,000 verified participants. High-profile investors like Tron founder Justin Sun have invested substantially, with Sun committing $75 million to the project.

The company’s financial structure allows entities connected to the Trump family to potentially receive up to 75% of the venture’s net revenue, a detail that has drawn both interest and scrutiny.

Separating Hype from Reality

Not everything about USD1 is as golden as its backers claim. While the stablecoin promises institutional-grade security, several red flags deserve closer scrutiny.

First, the project’s financial structure raises serious conflicts of interest concerns. With Trump-connected entities potentially receiving up to 75% of the venture’s net revenue, the line between political influence and financial innovation becomes uncomfortably blurry.

The high-profile investors, like Justin Sun, come with their own baggage. Sun is currently negotiating a potential settlement with the SEC over civil fraud allegations – hardly the pristine background one might expect from a “credible” financial venture.

Moreover, the stablecoin market is already crowded and established. Despite WLFI’s bold claims, USD1 will be competing with big players like Tether and Circle, who have years of market experience and existing institutional trust.

The promise of “institutional-ready” credentials sounds impressive, but actions will speak louder than marketing rhetoric.

While the Trump administration’s crypto-friendly policies provide a tailwind, they also invite scrutiny. The rapid push into digital assets, coupled with direct family financial interests, could be seen as more opportunistic than visionary.

Investors and market watchers would be wise to approach USD1 with a healthy dose of skepticism, carefully examining its actual performance and transparency rather than getting swept up in the political and marketing hype.