Have you ever wondered if a stablecoin supported by the family of a US president could shake the market positions of USDT and USDC? In today's rapidly changing crypto market, the latest actions of the Trump family have sparked widespread attention.
USD1: Trump Family's New Crypto Layout
On April 8, 2025, the crypto institution World Liberty Financial (WLFI), supported by the Trump family, released a governance proposal to launch the USD1 stablecoin on the Ethereum mainnet. This stablecoin is backed by US short-term Treasury bonds, dollar deposits, and other cash-equivalent assets, ensuring that each USD1 can always be exchanged for 1 dollar at a 1:1 ratio.
The launch of USD1 is not only an expansion of the Trump family's crypto asset business landscape but also a key step in improving the US crypto asset strategy. WLFI stated that USD1 will primarily target institutional investors and sovereign wealth funds as B-end users, choosing mainstream public chains such as Ethereum and Binance Smart Chain as the first issuance chains. Additionally, the reserve assets of USD1 will be managed by the crypto asset custody institution BitGo and audited regularly by third-party accounting firms to ensure asset transparency and security.
Market Response: Support and Doubts Coexist
The launch of USD1 has attracted widespread attention from the market. Supporters believe that the release of USD1 helps strengthen the dominance of the US dollar in the global stablecoin market and promotes the development of the US crypto asset strategy. However, many others have expressed doubts about the launch of USD1. First, the 'Trump family label' of USD1 raises concerns about potential conflicts of interest. Recently, the Trump family made huge profits from stock price fluctuations caused by tariff policy adjustments, leading more and more members of Congress to demand investigations into insider trading and market manipulation related to tariff policy adjustments. Second, USD1's target customers are institutional investors, making it difficult for the issuance scale to grow as quickly as it does for serving individual holders. Finally, leading stablecoins USDT and USDC have already built a rich business ecosystem, and it is unclear how USD1 will convert its brand advantage into business scenarios.
The Future of USD1: Challenges and Opportunities Coexist
The launch of USD1 undoubtedly injects new vitality into the global stablecoin market. However, its future development still faces many challenges. First, USD1 needs to establish a wide ecosystem in a short time to compete with USDT and USDC. Second, USD1 needs to gain recognition and support from regulatory authorities globally to ensure its legality and compliance. Finally, USD1 needs to invest significant resources in market promotion and user education to enhance its visibility and user acceptance.
How to Seize the New Opportunities Brought by USD1?
In light of the launch of USD1, investors should closely monitor its development dynamics and adjust their investment strategies in a timely manner. Mlion.ai, as an AI-driven crypto research assistant, provides price predictions, AI research reports, on-chain address analysis, and other functions to help users gain deeper insights into USD1's market performance and potential risks. Through Mlion.ai, users can access professional market analysis and investment advice to make informed decisions in the crypto market.
Disclaimer: The above content is for information sharing only and does not constitute any investment advice!
