World Liberty Financial Launches USD1 Stablecoin Targeting Institutional Investors

World Liberty Financial, the DeFi project inspired by President Donald Trump, on Tuesday confirmed its plans to roll out USD1, a stablecoin built with institutions and sovereign investors in mind.

World Liberty Financial (WLFI), the DeFi project inspired by President Donald Trump, has confirmed plans to launch USD1, a stablecoin designed with institutions and sovereign investors in mind.

The firm, which previously completed a token offering that raised over USD80 million, said Tuesday that USD1 will be fully backed by short-term US government treasuries, dollar deposits, and cash equivalents, and will be redeemable one-to-one for US dollars.

The token will launch on Ethereum and Binance Smart Chain, with plans to expand to other protocols. The launch date is currently unconfirmed.

“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,” said Zach Witkoff, WLFI co-founder.

As part of the initiative, WLFI has partnered with BitGo, a leading digital asset custody and prime brokerage service, to provide custodial and prime brokerage services for USD1. The reserves will be regularly audited by a third-party accounting firm.

Discussing the plan, Mike Belshe, CEO of BitGo, said that the launch of WLFI’s USD1 stablecoin would represent a major step forward in making digital assets more appealing and usable for large, traditional financial institutions.

“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,” Belshe stated.

The announcement comes after WLFI completed a number of test transactions for its USD1 stablecoin on the BNB Chain, Crypto Briefing reported Monday.

Wintermute also performed cross-chain tests between Ethereum and the BNB Chain.