Author: Weilin, PANews
"Having someone in the government makes it easier to get things done," is particularly applicable to the Trump family's crypto project. Recently, World Liberty Financial Inc. (WLFI) announced plans to launch the stablecoin USD1, which can be exchanged 1:1 for U.S. dollars. According to market observations, the soft launch of USD1's mainnet actually occurred around April 12, when the first batch of USD1 liquidity pools was deployed on Uniswap V3 and PancakeSwap V3. According to incomplete statistics, USD1 has quickly expanded and integrated more than 10 protocols or applications.
Since World Liberty Financial is a DeFi project of President Trump's family, the launch of this stablecoin USD1 has attracted widespread market attention, especially its subsequent deployment on Ethereum, BNB Chain, and Tron. While Ethereum's support is based on strength, BNB Chain and Tron may be more driven by commercial interests. For example, Binance's $2 billion financing for MGX was also completed through USD1 payments, adding $2 billion to the market value of that stablecoin. Sun Yuchen is the largest individual investor in WLFI, with an investment amount of $75 million.
Expanding from Ethereum and BNB Chain to Tron, integrating with various DeFi protocols.
According to official sources, WLFI's USD1 is 100% backed by U.S. short-term government bonds, dollar deposits, and other cash equivalents, ensuring that each token is anchored to a value of $1. The reserve asset portfolio is regularly audited by a third-party accounting firm and held by the independent qualified custodian BitGo. In addition, BitGo's bulk brokerage service BitGo Prime will also support USD1, enabling institutional clients to access ample liquidity and trading opportunities.
Initially, the USD1 token was minted on the Ethereum (ETH) and Binance Smart Chain (BSC) blockchains. On May 14, the BNB Chain also officially supported USD1, noting that Four.Meme, GMGN, and SafePal have all supported USD1.
On May 1, WLFI co-founder Zack Witkoff announced that USD1 would also be natively issued on the Tron chain, further expanding its cross-chain capabilities. Tron founder Sun Yuchen is also an advisor to WLFI, investing a total of $75 million in the project.
As of May 15, according to CMC data, the total circulating supply of USD1 has reached 2.13 billion, with a market value of approximately $2.13 billion, ranking fifth, behind USDT, USDC, DAI, and USDe.
The official announcement of USD1 quickly triggered market liquidity deployment. On April 12, the on-chain monitoring platform Lookonchain revealed that the market maker DWF Labs has deployed 6 DeFi liquidity pools for USD1, with a total value of $18 million. These pools include the following pairs:
Ethereum: 1.5 million USDT and 1.5 million USD1; 2.5 million USDC and 2.5 million USD1; 490,000 USDf and 500,000 USD1; 318.5 ETH and 500,000 USD1.
BSC Chain: 3 million USDT and 3 million USD1; 1730 BNB and 1 million USD1.
On April 9, DWF Labs also subscribed to 250 million WLFI at a price of $0.1, with a total amount of $25 million.
The launch of USD1 is not limited to the deployment of liquidity pools but also actively expands the DeFi ecosystem. Multiple protocols and DAOs have announced integration with USD1:
Venus Protocol: On May 15, the decentralized lending platform Venus based on the BNB chain announced the official launch of USD1.
Meson Finance: On May 15, the cross-chain DEX Meson Finance announced support for USD1.
StakeStone: On May 9, the all-chain liquidity infrastructure StakeStone announced the official launch of WLFI's integration.
Aster: On May 9, the decentralized perpetual contract exchange Aster included USD1 in its collateral options. This project is deployed on Ethereum and BNB Chain.
Lista DAO: On May 7, USD1 landed in the Lista DAO ecosystem, with the USD1/ListaDAO pool going live, bringing the release of stable yield and DeFi utility. Lista DAO is a liquidity staking derivatives (LSD) project operating within the BNB Chain ecosystem.
Pyth Network: On May 3, USD1 was integrated into the oracle solution Pyth Network.
Falcon Finance: On April 11, Falcon Finance launched USD1 as collateral, further expanding its application scenarios. This project is a synthetic dollar protocol supported by DWF Labs.
Landed on HTX and MEXC for completing MGX's investment in Binance
The application of USD1 is not limited to the decentralized ecosystem but has quickly entered centralized exchanges. On May 7, the USD1/USDT trading pair was launched on the HTX exchange, supporting deposits and trading, marking USD1's first listing on a major centralized exchange. On the same day, the USD1/USDT trading pair was also launched on the MEXC exchange, with zero withdrawal and trading fees.
Additionally, it is worth mentioning that on May 1, Eric Trump, son of U.S. President Trump and head of WLFI, stated that the USD1 stablecoin issued by WLFI has been officially selected as the official stablecoin for Abu Dhabi investment institution MGX to complete the $2 billion investment in Binance. Eric Trump expressed at the Token2049 event held in Dubai: "We thank MGX and Binance for their trust in us, and I believe this is just the beginning." Earlier this year, the Abu Dhabi-based investment company MGX invested $2 billion to acquire shares in Binance.
On May 16, Binance founder Zhao Changpeng publicly stated for the first time that MGX's $2 billion investment in Binance was completed with the USD1 stablecoin, but it is unrelated to the TRUMP token (Meme coin).
In terms of consumption scenarios, USD1 has also connected with several crypto payment and business projects:
TokenPocket: On May 15, the decentralized multi-chain wallet TokenPocket announced support for USD1.
HOT Wallet (HOT Protocol): On May 9, the TG ecosystem's HOT Wallet announced support for USD1.
Umy: On May 9, the Web3 travel and consumption platform Umy announced that users can use USD1 to book over a million hotels and luxury travel services worldwide on the platform.
Pundi X: On May 8, the Pundi X payment ecosystem fully integrated USD1, including XPOS and Pundi X Pay.
According to official sources, USD1 is primarily targeted at institutional clients, positioned to provide safe and efficient cross-border payment and trading tools, while supporting the broad application of the DeFi ecosystem. WLFI co-founder Zach Witkoff emphasized, "USD1 is a digital dollar stablecoin tailored for sovereign investors and large institutions, capable of supporting cross-border transactions seamlessly and safely."
Zach Witkoff also revealed that there will be more collaborations related to the stablecoin USD1 in the future. He stated: "World Liberty is preparing a large number of projects... We are fully promoting integration with traditional retail POS systems." So far, the progress of USD1's collaborations has been very rapid.
On May 7, WLFI initiated a new governance proposal: to test the airdrop function by distributing $1 to all $WLFI holders—rewarding the earliest supporters and preparing for future development. The proposal ended on May 14, with 11,780 votes cast, and 99.96% of the voting weight supporting it, leading to the proposal's smooth passage.
Overall, since its launch, USD1 has been demonstrating its future potential as the President family's DeFi project through multi-chain expansion and multi-protocol integration. Will a stablecoin endorsed by the U.S. president be able to secure a place in the stablecoin market and challenge the status of USDC and USDT? Subsequent market dynamics are worth further observation.
(The above content is an excerpt and reproduction authorized by partner PANews, original link)
"The Trump family project stablecoin USD1's cooperative landscape is beginning to take shape: deployed to 3 public chains and integrated with over 10 protocols" was first published in (Blockcast).
