USD1 is a politically-linked stablecoin launched by WLFI and the Trump family, aiming to serve sovereign and institutional financial use cases.
It is fully backed by U.S. bank deposits and Treasuries, with custody by BitGo—but lacks public audit transparency so far.
While USD1 has gained momentum, concerns over liquidity, political exposure, and long-term viability remain for investors.
USD1 is a Trump-backed stablecoin by WLFI, designed for institutional use and cross-border finance. Explore its structure, risks, and how it compares to USDT and USDC.
WHAT IS USD1?
USD1 is a USD-pegged stablecoin backed by the Trump family and issued by World Liberty Financial (WLFI), a DeFi-driven financial platform. WLFI focuses on building blockchain-based infrastructure for global payments and lending solutions.
Meet USD1 — the stablecoin your portfolio’s been waiting for.
Built for institutions and retail alike. Backed by dollars. Custodied by BitGo.
No games. No gimmicks. Just real stability.https://t.co/vXPbZe0GPn
— WLFI (@worldlibertyfi) March 25, 2025
🔍 Here’s what you need to know:
USD1 maintains a 1:1 peg with the U.S. dollar—similar to USDT—designed to simplify the conversion between fiat and digital assets for seamless, secure usage.
According to WLFI co-founder Zach Witkoff, USD1 is tailored for sovereign funds and institutional players seeking a reliable tool for cross-border settlements.
USD1 is one of WLFI’s three flagship products, alongside an on-chain lending marketplace that aims to boost liquidity and expand stablecoin utility across the DeFi ecosystem.
WLFI was founded in late 2024—just two months before Trump’s re-election—by Trump, his three sons, and real estate investor Zach Witkoff, positioning itself as a crypto-native alternative to traditional banking.
Since its launch on March 25, 2025, USD1 has seen rapid adoption. According to CryptoSlate, it has surpassed $2.1 billion in market cap, ranking among the top five stablecoins globally.
WLFI brands itself as a decentralized “crypto bank,” using blockchain to reimagine traditional finance, and benefits from its close alignment with Trump’s pro-crypto stance.
With strong ties to political leadership, institutional finance, and the evolving DeFi landscape, USD1 is more than just another dollar-backed token—it represents a strategic intersection of regulation, innovation, and market demand.
>>> More to read: Understanding Tether USDT
HOW DOES USD1 WORK?
USD1 is designed with a conservative and transparent structure, prioritizing stability over yield-generating complexity. This approach is tailored to meet the expectations of institutional players looking for clarity, security, and compliance.
✅ USD1 is fully backed 1:1 by U.S. bank deposits, short-term Treasury bills, and other cash-equivalent assets. This reserve model is deliberately conservative to minimize risk and support broader institutional adoption.
✅ The token initially launched on BNB Smart Chain (BSC), with plans to expand to Ethereum (ETH) and additional chains over time, enabling broader interoperability and liquidity.
✅ WLFI has partnered with BitGo—a regulated and insured digital asset custodian—to manage the dollar reserves that back USD1. This ensures that every token is verifiably secured by real-world assets under strict compliance standards.
✅ BitGo Prime, the firm’s institutional trading service, also supports USD1, offering deep liquidity and robust infrastructure for institutional clients.
✅ Mike Belshe, CEO of BitGo, emphasized that the launch of USD1 marks a meaningful step forward for institutional-grade digital assets: “Our clients demand both security and efficiency. With WLFI, we’re delivering both—ensuring reserves are safely held and managed under qualified custodianship.”
This is the stablecoin that institutions have been waiting for.@WorldLibertyFi’s USD1 brings together the strength of U.S. Treasuries, the transparency of full audits, and the security of BitGo’s custody and prime services.
It’s not just stable — it’s built to move at the… pic.twitter.com/6MDnEuHlHL
— BitGo (@BitGo) March 25, 2025
✏️ Notably, BitGo maintains strong ties with TRON founder Justin Sun, adding another layer of interest to the broader alliance surrounding USD1.
>>> More to read: What is USD Coin (USDC)?
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USD1 VS USDT VS USDC
While all three are USD-pegged stablecoins, USD1, USDT, and USDC differ significantly in their issuers, reserve backing, blockchain deployment, and regulatory positioning. Here’s a breakdown:
📌 Issuer Background
USDT is issued by Tether Limited and has long dominated the market in terms of liquidity and adoption.
USDC is jointly issued by Circle and Coinbase, with a strong emphasis on regulatory compliance.
USD1 is launched by World Liberty Financial (WLFI), a DeFi firm backed by the Trump family, aiming to serve institutional and cross-border financial use cases.
📌 Reserve Composition
USDT is backed by a mix of short-term U.S. Treasuries, cash, secured loans, precious metals, and other investments—though it’s often criticized for a lack of transparency.
USDC maintains 100% backing with cash and short-term U.S. Treasuries, audited monthly by top-tier firms like Deloitte.
USD1 is fully collateralized with U.S. bank deposits, short-term Treasuries, and cash equivalents, with custodianship managed by BitGo.
📌 Blockchain Support
USDT is deployed on a wide range of blockchains including Ethereum, Tron, Solana, BSC, Polygon, and Arbitrum.
USDC supports Ethereum, Solana, Avalanche, Algorand, Tron, and more.
USD1 initially launched on Ethereum and BNB Smart Chain (BSC), with plans to expand to additional chains over time.
📌 Primary Use Case
USDT is widely used for crypto trading and DeFi applications, often serving as a base pair on major exchanges.
USDC is favored for payments and regulated environments, designed with a focus on compliance and stability.
USD1 targets institutional use, particularly for cross-border transactions and sovereign-level asset strategies.
📌 Transparency and Regulation
USDT regularly publishes reserve reports but still faces ongoing criticism over its audit processes and regulatory clarity.
USDC is regarded as more transparent and compliant, with consistent third-party audits.
USD1 claims full transparency through BitGo custody and third-party audits (although full public reports remain limited). Its political ties—especially to Trump—may attract future regulatory scrutiny.
📌 Adoption and Popularity
USDT remains the most widely adopted stablecoin globally.
USDC continues to grow in influence, especially in regulated markets and institutional DeFi.
USD1 is a newer entrant but has gained rapid momentum under WLFI’s push, already reaching a $2.1 billion market cap.
✏️ A Note on USD1 vs. Legacy Stablecoins
Compared to established stablecoins like USDT and USDC, USD1 is still relatively new. However, World Liberty Financial (WLFI) has actively pursued strategic partnerships to accelerate adoption. As a result, USD1 has already broken into the top ten stablecoins by market capitalization.
That said, there’s an important clarification to be aware of before investing: there are two tokens named USD1 listed on CoinMarketCap.
✅ The USD1 stablecoin issued by WLFI is designed for institutional-grade use and cross-border finance.
✅ The other USD1 token belongs to Kinesis, a separate platform offering fast and secure transactions within its ecosystem. Kinesis also supports digital assets like gold (KAU) and silver (KAG), and their USD1 functions primarily within that closed-loop system.
⚠️ Before investing, make sure you’re selecting the correct USD1 stablecoin. Always double-check the issuer—World Liberty Financial—to ensure you’re accessing the right token in your portfolio or trading platform.
>>> More to read: What is Stablecoin ? Stable Virtual Assets
USD1 POTENTIAL RISKS
Despite its recent growth, USD1 comes with several potential risks that users should carefully consider.
1️⃣ First, there is currently no publicly verifiable proof of reserves. The project has not released any independent audits or transparency reports, leaving questions about whether USD1 is fully backed as claimed.
2️⃣ Second, liquidity is limited. USD1 is mainly available through two relatively small DEX pools on Ethereum and BSC. This means users may face difficulties buying or selling large amounts of the stablecoin without significant slippage or delays.
3️⃣ Finally, the token’s association with Donald Trump is a double-edged sword. While it may attract supporters from his base, it also draws scrutiny. The issuer, World Liberty Financial, has come under question due to its political ties—raising potential concerns about long-term credibility or regulatory pressure.
In short, while USD1 is gaining attention, early adopters should remain cautious and take a balanced view of both its promise and its vulnerabilities.
>>> More to read: Trump-Themed Tokens Explained: 8 Key Projects You Should Know
USD1 OUTLOOK & FUTURE
USD1 is entering an already saturated stablecoin market, where USDT and USDC continue to dominate as the top choices for traders. The field has grown even more competitive with new entrants like Ripple’s RLUSD, PayPal’s PYUSD, and Ethena’s USDe.
What sets USD1 apart from its competitors is its association with former U.S. President Donald Trump. His brand recognition has generated significant early attention, driving interest among politically aligned supporters and speculative investors alike.
However, questions remain about its long-term viability. Will USD1 evolve into a major player in the stablecoin ecosystem—or fade into obscurity like Trump’s previous crypto-related endeavors, such as the NFT trading card series?
Only time will tell. But for now, USD1 is a project worth watching closely.
>>> More to read: What is Trump’s Bitcoin Strategic Reserve Plan?
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〈What is USD1? A Complete Guide〉這篇文章最早發佈於《CoinRank》。
