What to know:
- World Liberty Financial (WLFI), a decentralized finance protocol associated with U.S. President Trump, has officially announced its intention to launch a stablecoin.
- The USD1 stablecoin will be entirely backed by short-term U.S. government securities, U.S. dollar deposits, and other cash equivalents, initially available on Ethereum and BNB Chain.
- This stablecoin aims to bridge access to decentralized finance (DeFi) while ensuring the integrity and reliability of traditional finance, according to WLFI co-founder Zach Witkoff.
World Liberty Financial (WLFI), the decentralized finance protocol linked to U.S. President Donald Trump and his family, confirmed on Tuesday its plans to launch a U.S. dollar-backed stablecoin.
The USD1 token is pegged to $1 and will be fully supported by short-term U.S. government securities, U.S. dollar deposits, and other cash equivalents. BitGo will hold the reserves, while BitGo Prime, their brokerage arm, will provide liquidity for the token.
Initially, the stablecoin will be available on Ethereum and BNB Chain, with future plans to extend to additional networks. This announcement follows attention from crypto analysts regarding test transactions involving the token on these platforms.
“USD1 offers what algorithmic and anonymous crypto projects lack—access to the power of DeFi grounded in the enhancements and protections offered by reputable financial institutions,” stated Zach Witkoff, WLFI co-founder. “We are providing a digital dollar stablecoin that significant investors and large organizations can confidently adopt for efficient and secure international transactions.”
WLFI, driven by Zachary Folkman and Chase Herro, gained prominence last year as one of the pioneering crypto projects endorsed by Trump. The project aspires to create a blockchain-based marketplace allowing users to engage in cryptocurrency lending and borrowing, set up liquidity pools, and execute transactions using stablecoins.
