World Liberty Financial, a DeFi protocol backed by former President Donald Trump, confirmed Tuesday that it plans to launch USD1, a stablecoin redeemable 1:1 for the U.S. dollar.
World Liberty's USD1 will be 100% backed by short-term U.S. government treasury, U.S. dollar deposits, and other cash equivalents. The firm said in a release that USD1 tokens will be minted on the Ethereum and Binance Smart Chain blockchains initially, with plans to expand to other protocols in the future. Each token is intended to maintain a value of $1, fully backed by a reserve portfolio audited regularly by a third-party accounting firm.
"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," WLFI co-founder Zach Witkoff said in the release. "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."
Witkoff is also the son of real estate developer and Trump's Middle East advisor, Steve Witkoff.
USD1 reserves will be custodied by BitGo, while BitGo Prime, its prime brokerage service, will support USD1 by providing institutional clients with access to deep liquidity and trading.
Earlier this month, President Trump said he hoped to have stablecoin legislation on his desk by August, and last week, he once again vowed to make the U.S. the "undisputed Bitcoin superpower."
"[I've] called on Congress to pass landmark legislation creating simple, common-sense rules for stablecoins and market structure," Trump said at a crypto conference. The total stablecoin market capitalization surpassed $230 billion for the first time ever following his appearance at last week's event.
Rumors about a potential stablecoin launch had floated around on social media over the weekend, with former Binance CEO Changpeng "CZ" Zhao acknowledging on Monday that a smart contract was deployed 20 days ago.
On March 13, CZ denied reports that he had pushed the Trump administration for a pardon, which coincided with a report that representatives of the Trump family held exploratory talks with Binance to take a stake in the crypto exchange's U.S. arm.
"I/Binance have no business deals with WLF or the people mentioned in their article," CZ posted on X. "We also did not buy any of the WLF coins."
Both CZ and WLFI posted on Monday that USD1 is not currently tradable and to be aware of scams.
World Liberty Financial closed its token sale earlier this month, raising about $550 million from selling 25% of WLFI’s supply. The protocol debuted in October to lackluster results, with one critic calling it "a meme masquerading as a utility project."
Of note, Trump Media and Technology Group Corp. said Monday it has signed a non-binding agreement with Crypto.com to launch a series of exchange-traded funds and products. The ETFs are expected to comprise digital assets and securities with a "Made in America" focus.
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