World Liberty Financial Launches USD1 Stablecoin Amid Market Surge

NEW YORK, Feb. 12, 2025 — World Liberty Financial, a decentralized finance venture backed by President Trump and his family, has announced the launch of USD1, a stablecoin pegged to the U.S. dollar. The coin aims to provide a secure digital dollar solution for cross-border transactions and will operate on the Ethereum and Binance Smart Chain networks.

According to a statement made by co-founder Zach Witkoff, the USD1 stablecoin will be backed by short-term U.S. government treasuries, U.S. dollar deposits, and other cash equivalents. “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,” Witkoff stated.

The stablecoin’s launch is particularly significant as the market cap for dollar-backed stablecoins has been climbing, recently achieving an all-time-high with a growth of over 46% in the past year, as reported by CryptoQuant. Market leaders like Tether (USDT) and Circle’s USD Coin (USDC) have long dominated the industry.

Since October, World Liberty Financial has raised substantial funds, including an announcement of $250 million last week. This project, which describes itself as a crypto banking platform, reveals that entities connected to the Trump family could receive benefits from these sales. More than 85,000 verified participants have already engaged with this venture, alongside investments from notable figures like Tron founder Justin Sun, who raised his stake to $75 million in January.

As mention of the Trump administration’s stance on cryptocurrency grows, efforts to create a Strategic Bitcoin Reserve were outlined in an executive order signed by President Trump. This aligns with the plan to tackle potential conflicts of interest, as shared by David Sacks, the administration’s AI and crypto advisor.

Witkoff expressed confidence in the project, claiming it is “on track to supercharge DeFi” despite growing scrutiny about its financial structure and political affiliations. Stablecoins play a crucial role by facilitating trading in centralized and decentralized exchanges and serving as collateral in DeFi transactions, making their performance indicative of market demand and liquidity.

Other U.S. stablecoin issuers include prominent players like Circle and Gemini, with Ripple also entering the fray with its new stablecoin, RLUSD, announced in December. Plans are already in motion for a stablecoin network backed by a consortium of companies, including prominent firms like Kraken.

Amid discussions about the importance of stablecoins to maintain the U.S. dollar’s global dominance, Treasury Secretary Scott Bessent remarked during the White House Crypto Summit that “we are going to keep the U.S. the dominant reserve currency in the world.”

In a virtual address to the Digital Asset Summit in New York City, President Trump emphasized the economic growth potential represented by stablecoins, stating that “with the dollar back, stablecoins, you’ll help expand the dominance of the U.S. dollar.”

Current legislative efforts are pushing for a robust framework to regulate stablecoins, which many experts view as an essential step toward broader crypto regulation. A bipartisan-supported bill has emerged from the Senate banking committee focused on providing this framework.

Alex Thorn, head of research at Galaxy Digital, noted that stablecoin legislation could have long-term impact on the U.S. dollar’s standing. “Stablecoins are seen as politically easier to regulate in Congress,” he stated. “The stablecoin bill could solidify dollar dominance for a century.”