On-chain data showed that the World Liberty Financial USD (USD1) stablecoin only has six holders so far.

WLFI Addresses 'Scams' Around $USD1 While news of the new stablecoin has been around for a few days now, WLFI only confirmed its latest move Monday

The World Liberty Financial USD (USD1) stablecoin, backed by former President Donald Trump, only has six holders so far, according to on-chain data.

The latest development came some five months since it was reported that the project was looking to launch a native stablecoin. At the time, WLFI was still working to ensure that the new offering will be safe for consumers.

WLFI Addresses ‘Scams’ Around $USD1

While news of the new stablecoin has been around for a few days now, WLFI only confirmed its latest move Monday, after former Binance CEO Changpeng "CZ" Zhao said the official USD1 digital coin "is not tradable yet" amid questions around the stablecoin’s launch.

Zhao said he was told that many "scammers created coins with the same name" as the WLFI stablecoin since he revealed that the coin’s smart contract was deployed 20 days ago.

USD1 is not currently tradable. Beware of scams and follow us here for all official announcements 🦅https://t.co/msnj0zLSp7

— CZ (@binancecz) July 10, 2024

WLFI re-shared Zhao’s post, indirectly confirming that USD1 is indeed an offering from the DeFi project but also clarifying that the token "is not currently tradable." It did urge crypto users to monitor the WLFI official X handle for official announcements on the stablecoin.

WLFI Takes Advantage of Congress Focus on Stablecoin Legislation

While the USD1 coin has yet to be officially traded, it’s clear that WLFI is betting big on the $200 billion stablecoin market as U.S. lawmakers push for stablecoin legislation.

Last week, House Republicans at the House Financial Services Committee said during a hearing on stablecoins and central bank digital currencies (CBDCs) that stablecoins can help strengthen the U.S. dollar’s dominance if they are regulated "without government overreach."

Also, late last month, at the Senate Digital Assets Subcommittee hearing on digital assets regulation and policy, Chair Cynthia Lummis, R-Wyo., a prominent Trump ally, said Congress will ultimately "start with stablecoins" when it comes to legislation that will provide regulatory frameworks around digital assets.

Trump’s Crypto Embrace Amid Concerns Around Conflict of Interest

Since Trump and his three sons got involved with WLFI, there have been serious concerns around conflict of interest and whether an individual holding the highest seat in government should be allowed to engage with cryptocurrencies, given the volatile nature of the assets.

Some also raised issue with the president and his wife launching their own meme coins, resulting in the Democrats’ introduction of the MEME Act, which will bar public officials in the highest positions, as well as their spouses and dependents, from issuing, sponsoring, or endorsing "a security, future, commodity, or digital asset."

Trump has yet to respond to concerns around his meme coin and involvement with WLFI.