Trump-Linked DeFi Platform Launches 'USD1' Stablecoin on Ethereum and Binance Blockchains

Public blockchain data indicated the launch of a new dollar-based stablecoin by a DeFi platform reportedly connected to the Trump family. Despite the absence of a public announcement, the token, named “USD1,” was observed to be active on the Ethereum and Binance blockchains.

Public blockchain data indicated the launch of a new dollar-based stablecoin by a DeFi platform reportedly connected to the Trump family. Despite the lack of a public announcement, the token, named “USD1,” was observed to be active on the Ethereum and Binance blockchains.

Earlier on Friday, former Binance CEO Changpeng Zhao took to X to warn investors that the official USD1 token was not yet tradeable and urged caution against potential scams.

“The official USD1 token is not yet tradeable. Please be aware of any asset claiming to be ‘USD1' that is available for trading. It’s likely a scam in the making,” Zhao wrote.

Speculation arose within the cryptocurrency community as blockchain data appeared to link the new stablecoin to World Liberty Financial, the political and economic foundation founded by former President Donald Trump and his family.

However, despite reports claiming that the Trump family venture was now holding cryptocurrency assets and rapidly expanding its footprint in the crypto sector, neither Binance nor World Liberty Financial had offered any commentary on the new token.

Trump family foundation’s venture into DeFi

A new report by FinTech disclosed that a venture by the Trump family foundation, World Liberty Financial (WLFI), reportedly had launched a new stablecoin on the Ethereum and Binance blockchains.

Despite the lack of an official announcement from either party, the token, named “USD1,” was observed to be active on both chains as early as Friday, according to data from blockchain analytics firm Token Terminal.

The development came after former Binance CEO Changpeng Zhao, known as “CZ,” took to X to warn investors about the new stablecoin.

“The official USD1 token is not yet tradeable. Please be aware of any asset claiming to be ‘USD1′ that is available for trading. It’s likely a scam in the making,” Zhao wrote.

He added: “We are focused on building useful products for the blockchain industry and have no plans to launch any new tokens at this time. We are also not involved in any partnerships with political organizations.”

The report, citing sources familiar with the matter, stated that the new stablecoin was launched by WLFI as part of broader efforts to expand its footprint within the cryptocurrency sector.

Since its inception, World Liberty Financial, the foundation set up by Trump and his family to support his 2024 presidential campaign, had reportedly been rapidly expanding its influence and holdings within the cryptocurrency space.

The venture into the stablecoin sector was seen as strategically valuable, potentially providing a substantial revenue stream for the platform.

Stablecoins are crucial for investor activities, providing a less volatile method for transferring and swapping cryptocurrencies. The new stablecoin, allegedly launched by WLFI, would enable the foundation to generate interest on cash reserves, fees, and through lending and partnerships.

Trump’s ‘Dollar Strong’ crypto vision

During the 2024 campaign, then-candidate Donald Trump had repeatedly emphasized the need for the U.S. to leverage the dollar in blockchain technology.

This emphasis on a “Dollar Strong” cryptocurrency aligned with Trump’s broader economic vision, especially in the face of growing global challenges to the dollar’s dominance.

During the July Bitcoin Conference in Nashville, Trump had urged America to take the leading role in adopting blockchain and Bitcoin technologies.

He warned that if the U.S. did not embrace crypto and Bitcoin technology, China and other countries would, potentially leading to their dominance, a scenario he described as unacceptable.