Trump’s Crypto Bank to Launch Its Own Dollar-Pegged Stablecoin

The decentralized platform World Liberty Financial, launched by the family of US President Donald Trump, has introduced its own stablecoin USD1, pegged to the US dollar.

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The USD1 stablecoin is pegged to the dollar and backed by short-term U.S. government Treasuries, dollar deposits, and other cash equivalents; the digital asset will operate on the Ethereum and Binance Smart Chain blockchains. “USD1 will provide something that algorithmic and anonymous crypto projects cannot — access to the power of DeFi, backed by the reputation and guarantees of the most respected names in traditional finance. We will offer a digital dollar stablecoin that sovereign investors and large institutions can confidently integrate into their strategies for seamless and secure cross-border transactions,” said Zach Witkoff, co-founder of World Liberty Financial.

World Liberty Financial launched in October last year and has raised $550 million to date; companies linked to the Trump family may receive up to 75% of the organization’s net income, according to official data. The stablecoin market cap has grown by 46% in the past year and has reached new all-time highs this year. USDT has traditionally dominated this niche of the cryptocurrency market, with USDC recently joining it. Stablecoins are considered a “systemically important” part of the cryptocurrency market — they are used in trading on centralized and decentralized cryptocurrency exchanges, as well as as collateral on DeFi platforms.

It is expected that the law regulating the circulation of stablecoins will be adopted in the USA this year – the GENIUS bill proposed by the Senate Banking Committee may acquire this status. With the legislative framework in place, American banks are expected to start issuing their own stablecoins – payments will become faster, cheaper and more transparent.