Trump-Backed World Liberty Financial (WLFI) Might Be Testing Its USD Stablecoin Before Public Launch

Crypto observers were speculating on Monday that World Liberty Financial (WLFI), the decentralized finance (DeFi) platform backed by U.S. President Donald Trump and his family, might be testing its long-awaited dollar-pegged stablecoin before rolling out for the broader public.

Crypto observers were speculating on Monday that World Liberty Financial (WLFI), the decentralized finance (DeFi) platform backed by U.S. President Donald Trump and his family, might be testing its long-awaited dollar stablecoin.

The speculation arose after blockchain sleuths noted the activity of a token labeled as World Liberty Financial USD (USD1) on blockchain monitoring websites Etherscan and BscScan.

Blockchain data shows that USD1 was deployed earlier this month on the Ethereum and BNB Chain networks and a series of transactions with the token occurred over the past couple weeks. Some transfers included addresses linked to large digital asset trading firm and market maker Wintermute and crypto custodian BitGo, according to Arkham Intelligence data. The token’s supply was at around 3.5 million-3.5 million on Ethereum and BNB Chain, according to the two blockchain explorers.

Changpeng CZ Zhao, founder of crypto exchange giant Binance, brought widespread attention to the token by “welcoming” the project to BNB Chain in a post with a screenshot of the USD1 BscScan profile. The post, he later said, triggered a wave of copy-cats aiming to capitalize on the new-found attention.

Reacting to the reports, WLFI said in a X post that USD1 is not currently available for trading and crypto users should beware of scams.

Stablecoin buzz

Founded by entrepreneurs Zachary Folkman and Chase Herro, WLFI hit the headlines last year as one of the first crypto projects to enjoy the backing of Trump and his family. The protocol aims to provide a blockchain-based marketplace where users can borrow and lend cryptocurrencies, create liquidity pools and transact with stablecoins.

It’s been widely known that the project is working on crafting its own stablecoin, but there hasn't been any official communication about the exact plans and timing of launching the token publically. CoinDesk has reached out to the team but did not receive any replies.

Stablecoins are one of the fastest-growing corners of the crypto industry and widely regarded as the killer use case for blockchains. With their prices pegged to an external asset, predominantly to the U.S. dollar, they are widely used as a crypto trading pair and transactions on blockchain rails. They are also increasingly used for everyday payments, remittances and savings, attracting the attention of many venture capital investors.

Buzz around the asset class has also been running high as the Trump administration elevated stablecoin regulation to the top of its crypto agenda. Treasury Secretary Scott Bessent said that stablecoins have a key role in preserving the U.S. dollar’s global role as a reserve currency.