World Liberty Financial (WLFI), the innovative decentralized finance protocol with notable backing from U.S. President Donald Trump and his family, has confirmed its plans to launch a stablecoin anchored to the U.S. dollar. The stablecoin, named USD1, is designed to maintain a value of $1, fully backed by a combination of short-term U.S. government securities, U.S. dollar deposits, and other cash equivalents.
The reserves for USD1 will be custodied at BitGo, a leading digital asset financial services firm, which will also provide liquidity through its brokerage service, BitGo Prime.
Initially, USD1 will be available on the Ethereum and BNB Chain networks, with future plans for expansion to additional blockchain platforms, according to WLFI’s announcement.
This strategic launch follows the interest from crypto observers who noted test transactions involving a token labeled World Liberty Financial USD (USD1) on both the Ethereum and BNB Chain, indicating the collaboration of BitGo and market maker Wintermute in these transfers.
Zach Witkoff, co-founder of WLFI, highlighted the unique value proposition of USD1, stating, “USD1 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. We’re offering a digital dollar stablecoin that sovereign investors and major institutions can confidently integrate into their strategies for seamless, secure cross-border transactions.”
WLFI, led by founders Zachary Folkman and Chase Herro, has made headlines since its inception, becoming one of the first cryptocurrency projects to garner support from Trump. The protocol aims to establish a blockchain-based marketplace where users can borrow and lend cryptocurrencies, create liquidity pools, and conduct transactions using stablecoins.
As the cryptocurrency landscape continues to evolve, the introduction of USD1 signifies a significant step towards bridging the gap between traditional finance and decentralized finance, providing both stability and accessibility to a broader range of investors.
