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 his 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 has warned that USD1 is currently not tradable and advised users to be cautious of potential scams.
Stablecoins like USD1 are becoming increasingly prominent in the cryptocurrency market, receiving significant attention in the U.S. Congress, where lawmakers have introduced several bills aimed at further supporting this 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 lucrative given the relatively low operational costs compared to traditional corporations.
Emerging Ethical Concerns
World Liberty Financial, announced in August, is part of Trump's broader effort 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 space, 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, emphasizing 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 various stakeholders, including Trump family members 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 along with DeFi developers Zak Folkman and Chase Herro, who previously faced numerous challenges with their Dough Finance project, which was hacked for $2 million.
Despite the enthusiasm surrounding the project, it has raised ethical concerns among experts, particularly regarding its potential to influence power.
Critics have pointed to instances such as Justin Sun publicly purchasing $75 million worth 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% over the monthly timeframe and down 84% from its current all-time high of $73.43 reached on its launch day, January 19.