According to recent reports, President Donald Trump's cryptocurrency project, the decentralized finance (DeFi) platform World Liberty Financial (WLFI), has announced a new stablecoin called USD1. This token, pegged to the US dollar, is now available on the Ethereum (ETH) and Binance blockchains, although the company did not officially announce the launch on Monday, March 24.
World Liberty Financial Launches New Stablecoin
This news comes from a report by Fortune, highlighting the expanding cryptocurrency portfolio of the President, who is currently serving a second term in the Oval Office.
On social media, Changpeng Zhao, former CEO of Binance, shared a link to the USD1 token with his 10 million followers on X, causing World Liberty Financial to tacitly confirm its legitimacy. However, the company warned that USD1 is currently not tradable and cautioned users to be vigilant against potential scams.
Stablecoins like USD1 are becoming increasingly prominent in the cryptocurrency market, attracting considerable attention in the U.S. Congress, where lawmakers have introduced several bills aimed at further supporting the sector.
Major companies like Tether, the issuer of the world's largest stablecoin USDT, reported profits of $13 billion in 2024, while Circle, the company behind USDC, is planning to list on the stock exchange.
These companies back their stablecoin with U.S. Treasury bonds, allowing them to earn significant profits, which has proven to be profitable due to relatively low operating costs compared to traditional corporations.
Emerging Ethical Concerns
World Liberty Financial, announced in August, is part of Trump's broader efforts to penetrate the cryptocurrency world, including non-fungible tokens (NFTs) and a memecoin named after President TRUMP.
The project is positioning itself in 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 services remain vague, with very little information available on their website.
"The project's 'golden paper' outlines ambitions to create a comprehensive hub for various DeFi applications, including decentralized lending platforms and cryptocurrency exchanges. Trump himself holds the title of 'Chief Cryptocurrency Advocate' for World Liberty Financial, highlighting his involvement in this initiative.
To demonstrate investor confidence, the project recently announced it has raised $550 million from token sales, attracting the attention of many stakeholders, including members of the Trump family and loyal supporters.
Barron, Eric, and Donald Jr. have been appointed as 'Web3 Ambassadors' for World Liberty Financial, 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 multiple challenges with their project Dough Finance, which was hacked for $2 million.
Despite the enthusiasm surrounding the project, it has raised ethical concerns among experts, particularly regarding its potential to impact power.
Critics have pointed to instances like Justin Sun publicly buying $75 million of World Liberty Financial tokens, suggesting that such activities could blur the lines of regulatory compliance.
At the time of writing, the TRUMP memecoin is trading at $11.58, down 30% on a monthly timeframe and down 84% from its current all-time high of $73.43 achieved on the same launch day, January 19.