World Liberty Financial, a cryptocurrency platform established by President Donald Trump's family, is launching its own stablecoin, USD1.

World Liberty Financial, a cryptocurrency platform established by President Donald Trump's family, is launching its own stablecoin, USD1.

Donald Trump's family is launching a stablecoin.

World Liberty Financial, a cryptocurrency platform established by President Donald Trump's family, is launching its own stablecoin, USD1. A stablecoin is a type of cryptocurrency designed to maintain a stable value by being pegged to a fiat currency like the US dollar.

According to industry sources on the 29th, World Liberty Financial announced on the 25th that it would soon issue the US dollar-based stablecoin USD1. USD1 is pegged to the value of 1 dollar and is fully backed by short-term US Treasury bonds, dollar deposits, and other cash-equivalent assets. It will be issued on Ethereum and Binance Chain, with plans to expand to other blockchains in the future. The reserves will be held by the custodian BitGo and will undergo regular external audits.

Recently, the Trump administration has been supporting stablecoins to strengthen the global dominance of the dollar. In a speech at a digital asset conference on the 20th, President Trump emphasized that "dollar-based stablecoins will contribute to further strengthening the dominance of the dollar." US Treasury Secretary Scott Besant also expressed his intention to use stablecoins to enhance the global dominance of the dollar.

There is also analysis that the Trump family is actively getting involved in the market amid the explosive growth of the stablecoin market. According to data analysis firm CryptoQuant, the dollar-based stablecoin market has grown by 46% over the past year. Notably, Tether, the world's largest issuer of stablecoins, reportedly earned over $13 billion (approximately 19 trillion won) in net profit last year. US asset management firm Bernstein predicts that the stablecoin market size will reach $500 billion (approximately 727.25 trillion won) by next year.

Along with this, the 'Genius Act,' which could shake up the stablecoin market, is aiming to pass the US Congress. The bill recently passed the Senate Banking Committee and is awaiting a full Senate vote. If passed, stablecoins issued by US companies are expected to gain more dominance in the market. Previously, David Sachs, the White House cryptocurrency czar, stated that processing the stablecoin bill is a top priority.

Meanwhile, concerns about conflicts of interest are being raised as the Trump family directly engages in the cryptocurrency business. Cryptocurrency media outlet CoinDesk reported that "World Liberty Financial announced the launch of a stablecoin shortly after raising $500 million through its own token sale, and experts and legal scholars are increasingly raising concerns about potential conflicts of interest within the Trump administration."

Kang Min-seung, Bloomingbit Reporter / Cho Mi-hyun Reporter minriver@bloomingbit.io