Trump's New Crypto Venture, USD1 Stablecoin, Pegged to the US Dollar, Launches on Ethereum and Binance

According to recent reports, President Donald Trump's crypto venture, the decentralized finance (DeFi) platform World Liberty Financial (WLFI), has unveiled a new stablecoin called USD1. This token, pegged to the US dollar, is now live on the Ethereum (ETH) and Binance blockchains

According to a recent report by Fortune, World Liberty Financial (WLFI), the decentralized finance (DeFi) platform co-founded by former President Donald Trump, has launched a new stablecoin called USD1.

The token, which is pegged to the US dollar, is now live on the Ethereum (ETH) and Binance blockchains.

The launch was not officially announced by the company on Monday.

Announcing the launch on X, former Binance CEO Changpeng Zhao linked to the USD1 token, which is currently not tradable and users are being warned about potential scams.

Stablecoins have become a hot topic in the crypto market, with several bills being introduced in US Congress to further support the sector.

Major players such as Tether, the issuer of the world’s largest stablecoin, USDT, reported $13 billion in profit for 2024, while Circle, the company behind USDC, is planning to go public.

These companies back their stablecoins with US treasuries, allowing them to earn significant yields, especially given their relatively low operational costs compared to traditional corporations.

World Liberty Financial, which was announced in August, is part of Trump’s broader foray into the cryptocurrency world, which also includes non-fungible tokens (NFTs) and a memecoin named after the President, TRUMP.

The project is positioning itself within the decentralized finance sector, aiming to replicate traditional banking services—such as lending and borrowing—on blockchain platforms. However, details about the project’s specific offerings are scant, with little information available on their website.

The project’s “gold paper” reveals ambitions to create a comprehensive hub for various DeFi applications, encompassing decentralized lending platforms and cryptocurrency exchanges. Trump himself holds the title of “Chief Crypto Advocate” for World Liberty Financial, highlighting his direct involvement in the initiative.

In a display of investor interest, the project recently disclosed having raised $550 million through token sales, garnering attention from diverse stakeholders, including members of the Trump family and close supporters.

Barron, Eric, and Donald Jr. have been appointed as World Liberty Financial’s “Web3 Ambassadors,” while real estate mogul Steve Witkoff and his sons are listed as co-founders alongside DeFi developers Zak Folkman and Chase Herro, who previously faced challenges with their project, Dough Finance, which suffered a $2 billion hack.

Despite the buzz surrounding the project, it has sparked ethical concerns among experts, particularly regarding the potential for influence peddling.

Critics have highlighted instances like Justin Sun’s public purchase of $75 million worth of World Liberty Financial tokens, suggesting that such activities could blur the lines of regulatory compliance.

At the time of writing, TRUMP memecoin is trading at $11.58, down 30% on a monthly time frame and 84% off its current record high of $73.43 reached on the same day of its debut on January 19.