World Liberty Financial (WLFI), the decentralized finance company backed by the Trump family, is getting into the stablecoin business.
The company said Tuesday (March 25) that it plans to launch USD1, a stablecoin redeemable 1:1 for the U.S. dollar and 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,” Zach Witkoff, WLFI co-founder, said in a news 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.”
According to the release, USD1 reserves will be held in custody by BitGo. The coins will be minted on the Ethereum and Binance Smart Chain blockchains, with plans to eventually expand to other protocols.
This is the second Trump-related crypto announcement in as many days. On Monday (March 24), Trump Media, owner of the president’s Truth Social platform, announced it was teaming with Crypto.com to launch a series of exchange traded funds (ETFs).
The company said the ETFs would “comprise digital assets as well as securities with a Made in America focus spanning diverse industries such as energy.”
The Trump-connected companies are deepening their exposure to digital assets as the president lobbies to make America a more crypto-friendly place. Since taking office, Trump has taken steps such as signing executive orders calling for the creation of a national bitcoin reserve, and hosting a gathering of crypto officials at the White House.
Meanwhile, PYMNTS wrote recently about efforts by the world’s biggest banks and FinTechs to roll out their own stablecoins, following the lead of companies like Stripe and PayPal.
“Stablecoin adoption will only grow if inefficiencies in usage are solved,” Tanner Taddeo, CEO and co-founder of Stable Sea, said in an interview with PYMNTS’ Karen Webster.
“When businesses want to move enterprise-grade money across borders — typically north of $500,000 — they run into three major pain points: limited liquidity for large transactions, long settlement times and complex integrations.”
Research by PYMNTS Intelligence has found that blockchain-based cross-border solutions, especially stablecoins, are being increasingly employed by firms looking to find a better way to transact and expand internationally.
