Trump-Backed World Liberty Financial to Launch USD1 Stablecoin on Ethereum and BNB Chain, Challenging USDT and USDC

World Liberty Financial, a decentralized finance project backed by President Donald Trump, has announced plans to launch a new stablecoin named USD1. The stablecoin will be pegged to the U.S. dollar and fully backed by short-term U.S. government treasuries, dollar deposits, and other cash equivalents. USD1 will be redeemable 1:1 for the U.S. dollar.

USD1 is set to be initially issued on the Ethereum and BNB Chain blockchains, with future plans to expand to other protocols. The reserves for USD1 will be custodied by BitGo, a regulated and independent custodian, ensuring secure and regulated access for institutional clients. BitGo Prime, BitGo's prime brokerage service, will also support USD1, providing institutional clients with access to deep liquidity and trading.

This move comes as part of a broader push by the Trump administration to support digital tokens and enhance the dominance of the U.S. dollar through stablecoins. WLFI co-founder Zach Witkoff stated that USD1 provides access to the power of DeFi underpinned by traditional finance credibility. Mike Belshe, BitGo CEO, highlighted the launch as a significant advancement in institutional-ready digital assets. WLFI has raised $550 million through sales of its governance token WLFI, with 75% of the proceeds going to a Trump-linked company. The launch of USD1 is anticipated to challenge existing market leaders like Tether's USDT, which posted a $13 billion profit last year, and Circle's USDC, amid ongoing discussions about a stablecoin bill in Congress.

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