Recent reports indicate that President Donald Trump’s crypto venture, the decentralized finance (DeFi) platform World Liberty Financial (WLFI), has introduced a new stablecoin named USD1.
This token, which is pegged to the US dollar, is now operational on both the Ethereum (ETH) and Binance blockchains, although its official launch was not announced by the company on Monday, March 24.
World Liberty Financial Launches New Stablecoin
The news comes from a report by Fortune, which highlights the expanding crypto portfolio of the President, who is currently serving his second term in the Oval Office.
On social media, Changpeng Zhao, the founder of Binance, linked to the USD1 token for his 10 million followers on X, implicitly confirming the token’s legitimacy. However, the company has cautioned that USD1 is not currently tradable and advised users to remain vigilant against potential scams.
Stablecoins like USD1 are gaining prominence in the crypto market, attracting attention in the US Congress, where lawmakers are proposing various bills to better support the sector.
Major players in the stablecoin sector, including Tether, the issuer of the largest stablecoin USDT, reported an impressive $13 billion in profit for 2024, while Circle, which manages USDC, is exploring going public. These companies back their stablecoins with US treasuries, enabling them to achieve substantial yields, which have proven lucrative due to their low operational costs relative to traditional corporations.
Ethical Concerns Arise
World Liberty Financial, launched in August, represents a part of Trump’s wider engagement in the cryptocurrency realm, which includes non-fungible tokens (NFTs) and a memecoin named TRUMP. The project is strategically positioned within the DeFi sector, aiming to replicate traditional banking services—like lending and borrowing—on decentralized platforms. Nevertheless, specific details regarding the offerings remain sparse, with limited information available on their website.
The project’s “gold paper” details aspirations to create a comprehensive hub for various DeFi applications, including decentralized lending platforms and crypto exchanges. President Trump serves as the “Chief Crypto Advocate” for World Liberty Financial, highlighting his active participation in the initiative.
In a demonstration of investor confidence, the project recently announced it had raised $550 million in token sales, garnering interest from several stakeholders, including prominent family members of Trump. Barron, Eric, and Donald Jr. have been designated as Web3 ambassadors for World Liberty Financial, alongside real estate figure Steve Witkoff and his sons as co-founders, working with DeFi developers Zak Folkman and Chase Herro, who previously dealt with setbacks involving the $2 million hack of their project, Dough Finance.
While the project’s potential has generated enthusiasm, it has also raised ethical considerations among experts, particularly regarding the implications of influence peddling. Critics have highlighted incidents like Justin Sun’s public acquisition of $75 million worth of World Liberty Financial tokens, suggesting such actions might obscure lines of regulatory compliance.
As this narrative unfolds, the TRUMP memecoin is currently trading at $11.58, which reflects a 30% drop over the past month and an 84% decrease from its peak of $73.43 achieved on its debut day, January 19.
featured image from DALL-E, chart from TradingView.com
