World Liberty Financial (WLFI), a crypto project backed by President Donald Trump and his family, has announced it will launch a new stablecoin called USD1, backed by U.S. government Treasurys, cash deposits, and equivalents. The move further cements the Trump administration’s goal to make the U.S. the “bitcoin superpower of the world.”
The USD1 token will be issued on both Ethereum and Binance’s blockchain, the latter of which has reportedly developed closer ties with Trump’s inner circle. The initiative reflects WLFI’s deeper expansion into the crypto space, following its earlier fundraising of $550 million from over 85,000 global investors, including notable backer Justin Sun, founder of Tron.
A Conservative Approach Amid Market Skepticism
Unlike controversial algorithmic stablecoins like TerraUSD, which infamously collapsed in 2022, WLFI claims USD1 will avoid risky yield-generating mechanisms. The token’s reserves will be held by BitGo, a major crypto custodian, and undergo regular third-party audits. BitGo’s prime brokerage will also facilitate USD1 trading for institutional clients.
Zach Witkoff, co-founder of WLFI and son of Trump’s former special envoy to the Middle East, emphasized that USD1 aims to offer DeFi access backed by traditional financial safeguards. “USD1 provides what algorithmic and anonymous crypto projects cannot,” Witkoff said, calling the token a blend of decentralized finance and mainstream credibility.
Political Power Meets Blockchain
The announcement comes just weeks after President Trump hosted the first White House Crypto Summit, where he signed an executive order to establish a U.S. strategic Bitcoin reserve. The Trump administration has positioned itself as crypto-friendly, in sharp contrast to earlier regulatory hostility under previous governments.
WLFI’s latest move has triggered wide interest—and caution—across the crypto space. Binance founder Changpeng Zhao posted on X (formerly Twitter) to welcome the project to Binance Smart Chain but also warned about scammer tokens attempting to copy USD1. The real USD1 is not yet tradable, according to Zhao.
Stablecoin Ambitions with Political Backing
WLFI’s USD1 aims to challenge market leaders like Tether and USDC, which dominate the stablecoin landscape. With institutional-grade infrastructure and government-affiliated credibility, USD1 could represent the next phase of stablecoin evolution—one with powerful backers and a clear regulatory edge.
As the Trump family’s crypto ambitions continue to expand, USD1 could be a flagship product that reshapes how stablecoins are perceived in both the financial and political arenas.