The Trump family business is making a fresh move into the crypto space — this time through a decentralized fintech entity called World Liberty Financial (WLFI). The project has launched a new stablecoin named USD1, which is now live on both Ethereum and BNB Chain.
The initiative aims to merge the security of traditional finance (TradFi) with the benefits of decentralized finance (DeFi).
A Competitor to USDT and USDC Backed by US Treasuries
According to Zach Witkoff, co-founder of WLFI, USD1 is backed by U.S. government securities, offering a level of stability that differentiates it from algorithmic or anonymous stablecoins, which are often prone to failures or trust issues.
“USD1 offers DeFi users what algorithmic projects can’t — reliability and support based on trusted instruments from the traditional market,” said Witkoff.
The project has garnered increased attention due to its political backing. While Binance doesn’t see USD1 as a direct replacement for leading stablecoins like USDT or USDC, the exchange’s founder Changpeng Zhao (CZ) acknowledged the importance of diversity in stable digital currencies.
Potential Regulatory Implications
Analysts believe that USD1 could influence future regulation, particularly in light of the GENIUS Act currently under discussion in the U.S. Congress, which aims to establish a legal framework for regulated digital currencies.
At a recent crypto summit, Donald Trump himself emphasized the urgent need for legislation governing stablecoins.
Given its direct backing by government assets, USD1 is being seen as an example of “regulated DeFi” — a model that could serve as a middle ground between financial innovation and regulatory oversight.
WLFI’s Role in the Crypto Industry
This isn’t WLFI’s first venture into the crypto space. The organization, linked to the Trump circle, has previously invested in tokens such as:
- Ethereum (ETH).
- Wrapped Bitcoin (WBTC).
- Tron (TRX).
- Chainlink (LINK).
- Aave (AAVE) and others.
According to past reports, WLFI’s total crypto investments exceed $346 million, despite an unrealized loss of around $111 million.
The launch of USD1 marks the latest step in WLFI’s efforts to cement its role in the digital economy. Given the market’s current interest in stable assets and their connection to traditional finance, the project could carve out a niche for itself — especially if regulators approve its approach.
This post is for informational purposes only and is not an ad or investment advice. Please do your own research making any decisions.
