World Liberty Financial, The Decentralized Finance Protocol that was founded and run primarily by President Donald Trump’s Sons, announced tuesday That it will launch a stablecoin called usd1. That Announcement Comes Less Than One Week after President Trump Threw his support Behind a new legal framework that would seek to normalize stablecoins.
According to reutersUSD1 will be backed by us treasury bonds, dollars, and other cash equivals. It’ll launch on ethereum and binance smart chain blockchains, with plans to expand to other protocols in the future.
Like Most Stablecoins, UsD1 seeks to mainta a fixed value of $ 1 raather than be a more valati token. Stablecoins are typical meaning for crypto bros to park their cash in. Think of Stablecoins Like Poker Chips – You Buy in with Real Cash, Use the Chips to Play the Games (In this case, throwing money into some memecoin or whitever), and then Cash them out for Real Money Out for Real Mainy When You’re’re ‘ Done.
But World Liberty Financial Certainly Seems to have a Particular Audience in Mind with UsD1. Zach Witkoff, One of the Founders of the Company AlongSide the Trumps, Said the company is “offering a digital dollar stablecoin that Sovereign Investors and Major Institutes Can Confident Strategies for Seamless, Secure Cross-Border Transactions. ” So it sounds like they’re quite interested in overseas money.
That might raise a red flag, you know, with trump being the president of the united states and whatnot. World Liberty Financial has Alredy Been Accused of Basically Being A Favor-Trading Fund-For Instruction, The Securities and Exchange Commission Paused a fraud Case Against Chinese National Justin Sun after He Purchased Millions of World Liberty Financial’s Token. It seems the company is inviting other overseas interestions to trust it to hold onto their money with this stablecoin project. (It’s also win noting that zach witkoff’s dad, Steve WitkoffIs currently serving as the Trump Administration’s Special Envoy to the Middle East.)
That is far from the only red flag flying full mast with this announsement, though. Just last week, trump spoke at the digital asset summit 2025, and called on Congress to “Pass Landmark Legislation Creating Simple, Common-Sen For Stablecoines and Market Structure” a the Guiding and Establishing National Innovation for Us Stablecoins (Genius) Act That just got approval from the Senate Banking Committee Earlier this month. That bill would establish a regulatory framework for stablecoins that would effectively normalize their usage in our broader financial system.
A Couple Things to Know About The Genius Act: First, The Senators who introduced it want Stablecoins to “Strengthen the Dollar’s Supremacy” and Drive “Demand for Us Treasuries” Pegued to the dollar. Wouldn’t you know it, USD1 does exactly that. Second, Critics of the Bill, Including Senator Elizabeth Warren, Have pointed out That it does not offer sufficient National Security Protections and Cold Allow Money to Funnel Into StableCunes from Foreign Countries. World Liberty Financial is positioning Its Stablecoin as an option for foreign investors. Are that statements related? Who can say for sure.
Lots of Money Can Pass Through StableCoins, and It Generates Big Bucks for Its Operators. Tether reported that it Racked up $ 13 billion in profits In 2024 Alone, Primarily Through Transaction Fees and Interest on its treasury holdingsThis, despite the fact that most stablecoins have, at some point, Become Unpegged From their promised value, potentially causing instability and an inability for investors to get their money out.
Seems like a promising business for the Guys at World Liberty Financial, who somehow Continue to be ahead of the curve on what the Trump Administration Plans to do with Crypto Regulations. Gues it’s nice to have a direct line to the guy signing the laws.