The cryptocurrency project World Liberty Financial, backed by former U.S. President Donald Trump, has announced plans to launch a new stablecoin called USD1, which will be redeemable for the U.S. dollar. The currency will be supported by short-term Treasury bonds and dollar deposits, with BitGo acting as the custodian. It will be minted on the Ethereum and Binance Smart Chain blockchains, and the launch is scheduled for today with only one hour left until the launch of the USD1 coin.
The Trump-backed administration aims to enhance the use of stablecoins, which are digital tokens designed to maintain a stable value through traditional assets. The USD1 project aims to provide a reliable stablecoin for institutional investors to facilitate cross-border transactions.
While stablecoins enjoy strong support from Washington, they face criticism for their use by criminals in transferring money across borders. There are also concerns about their potential negative impact on the financial system in times of crisis.
World Liberty Financial was established last September as a decentralized financing project, aiming to provide financial services without intermediaries
USD1
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