Trump-Backed World Liberty Financial Launches USD1 Stablecoin Amid Growing Market

World Liberty Financial (WLFI), a decentralized finance venture backed by former U.S. President Donald Trump and his family, has entered the stablecoin market with the launch of USD1. The stablecoin, which is pegged to the U.S. dollar, is backed by short-term U.S. government treasuries, dollar deposits, and other cash equivalents.

With plans to go live on Ethereum and Binance Smart Chain, USD1 aims to combine the benefits of DeFi with the stability and safeguards of traditional finance.

A Growing Stablecoin Market

The launch of USD1 comes as the stablecoin market continues to expand, growing 46% in the past year, according to Crypto Quant. Dominated by Tether (USDT) and Circle’s USDC, stablecoins have become a key component of crypto trading, liquidity, and decentralized finance (DeFi) applications.

World Liberty Financial co-founder Zach Witkoff highlighted USD1’s differentiators:

“USD1 provides what algorithmic and anonymous crypto projects cannot — access to the power of DeFi underpinned by the credibility and safeguards of the most respected names in traditional finance.”

He added that USD1 is designed for institutional investors and sovereign entities, offering a secure and seamless digital dollar for cross-border transactions.

Stablecoins and U.S. Dollar Dominance

The growing role of stablecoins in maintaining the global dominance of the U.S. dollar has been a topic of increasing discussion. At this month’s White House Crypto Summit, Treasury Secretary Scott Bessent stated:

“We are going to keep the U.S. the dominant reserve currency in the world, and we’re going to use stablecoins to do that.”

Trump himself, speaking virtually at last week’s Digital Asset Summit in New York, emphasized the potential of stablecoins to drive economic growth and further strengthen the dollar’s global standing.

Competition in a Crowded Stablecoin Market

With USD1, World Liberty Financial joins a rapidly expanding list of U.S.-based stablecoin issuers. Recent entrants include:

• PayPal (PYUSD) and Gemini (GUSD), which have gained traction among users.
• Ripple USD (RLUSD), launched in December 2024.
• USDG, a stablecoin backed by a consortium including Robinhood, Galaxy Digital, and Kraken.

The race to dominate the stablecoin sector is heating up as financial firms and crypto-native projects compete for adoption.

Regulatory Outlook for Stablecoins

The U.S. is moving toward stablecoin regulation, with the GENIUS Act—a framework for oversight—gaining bipartisan support in the U.S. Senate Banking Committee. Many market participants expect stablecoin legislation to pass this year, which could pave the way for banks to issue their own stablecoins to facilitate faster, cheaper, and more transparent payments.

With World Liberty Financial entering the fray, the stablecoin sector is set for even greater competition and potential regulatory scrutiny. As the market evolves, USD1’s institutional focus and backing by the Trump family could help it carve out a unique position in the growing digital dollar landscape.