President Donald Trump has entered the cryptocurrency market once again through his family company with the launch of a new dollar-pegged digital token. World Liberty Financial Inc. (WLFI) announced the release of USD1, a stablecoin backed entirely by short-term U.S. government treasuries, dollar deposits and other cash equivalents, according to a company statement issued Wednesday.
What to Know:
- Trump's family company WLFI has launched a dollar-pegged stablecoin backed by U.S. treasuries and cash equivalents
- The USD1 token will initially operate on Ethereum and Binance Smart Chain with BitGo providing custody services
- The stablecoin targets institutional and sovereign investors rather than retail traders for large cross-border transactions
Trump's Company Introduces Institutionally-Focused Digital Currency
The stablecoin maintains a fixed 1:1 ratio with the U.S. dollar and will initially operate on the Ethereum and Binance Smart Chain blockchains.
WLFI emphasized that the token's reserves will undergo regular third-party audits to ensure full transparency. The company plans to extend the token's availability to additional blockchain networks in the near future.
"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," said Zach Witkoff, co-founder of WLFI. The company clearly distinguishes its offering from other cryptocurrency projects by highlighting its institutional focus and regulatory compliance.
WLFI stated that USD1 is designed specifically for institutional clients and sovereign investors seeking alternatives to traditional banking systems for transferring substantial sums. This positioning reflects a deliberate strategy to distance the token from retail-focused cryptocurrencies that have faced regulatory scrutiny.
The company has selected BitGo, a digital asset custody provider that manages billions in cryptocurrency for institutional clients, to oversee the stablecoin's reserves. BitGo's responsibilities include qualified custody, trading services, and liquidity support through its BitGo Prime platform.
Mike Belshe, CEO of BitGo, emphasized the institutional appeal of the new stablecoin. "The launch of USD1 represents a significant advancement in institutional-ready crypto," Belshe said. "Our clients demand both security and efficiency, and this partnership with WLFI delivers both – combining deep liquidity with the assurance that reserves are securely held and managed within regulated qualified custody."
USD1: Differentiation Strategy and Future Plans
Witkoff drew clear distinctions between USD1 and other cryptocurrency projects, particularly algorithmic stablecoins that have faced stability challenges. "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," he stated.
The company appears to be leveraging Trump's business reputation as part of its marketing strategy. WLFI claims its organizational structure draws inspiration from the former president, though specific details about his direct involvement with day-to-day operations were not disclosed in the announcement.
Beyond the stablecoin, WLFI outlined ambitious plans to develop a comprehensive decentralized finance (DeFi) ecosystem.
This includes creating a governance platform and financial tools designed to reduce complexity for users. The company expressed its intention to build systems that provide financial access without reliance on centralized intermediaries.
The announcement notably avoids discussion of yield-generating mechanisms or interest rates, instead emphasizing security and regulatory compliance. This approach aligns with increasing regulatory scrutiny of cryptocurrency projects, particularly those offering interest-bearing products.
WLFI's decision to launch a stablecoin enters an increasingly competitive market dominated by established players like Tether's USDT and Circle's USDC. The company appears to be counting on institutional relationships and transparency commitments to differentiate its offering in this crowded space.
Not the First Time
Trump family isn't entering crypto market for the first time.
In October, WLFI launched its own token WLF, raising $300 million.
The TRUMP token, launched on January 17, 2025, initially surged over 300%, reaching an all-time high of $75.35 within days. However, it subsequently plummeted by approximately 85%, trading at $11.07 as of March 21, 2025.
Similarly, the MELANIA token peaked at $13.73 on January 20, 2025, but has since declined by over 90%, currently valued at around $0.67. These significant downturns have raised concerns among investors and industry experts regarding the speculative nature of such meme coins.
A Strategic Entry into Digital Finance
Anyway, the launch of USD1 represents a significant move by Trump's business interests into the digital asset space. By focusing on institutional clients and regulatory compliance, WLFI positions its stablecoin as a bridge between traditional finance and blockchain technology rather than a speculative investment.
The success of this venture will likely depend on the company's ability to establish trust with institutional investors and deliver on its promises of transparency and security in an industry often plagued by regulatory uncertainty.