USD1 is fully backed by U.S. Treasuries and cash equivalents, with reserves held by BitGo custodian, promising the security of traditional finance combined with DeFi accessibility.
The Trump family could receive up to 75% of World Liberty Financial’s net revenue, raising potential conflict of interest concerns as the venture targets institutional cross-border transactions.
USD1 faces fierce competition in the $237 billion stablecoin market dominated by USDT and USDC, requiring strong ecosystem development and regulatory compliance to gain meaningful adoption.
World Liberty Financial launches USD1, a Trump family-backed stablecoin aiming to compete with USDT and USDC in the $237 billion stablecoin market. Discover what makes USD1 different and whether it can succeed in this crowded space.
World Liberty Financial, a decentralized finance (DeFi) venture backed by former President Donald Trump and his family, recently announced the launch of its new stablecoin called USD1. Along with this, they have started an airdrop to distribute USD1 tokens, aiming to draw attention and build a user base quickly. But what exactly is USD1, and can it really compete with the heavyweights like Tether and USDC in the crowded stablecoin market?
WHAT IS USD1?
USD1 is a dollar-pegged stablecoin, which means its value is designed to stay close to 1 US dollar. Stablecoins like USD1 play an important role in the crypto world because they offer a way to hold value without the wild price swings seen in cryptocurrencies like Bitcoin or Ethereum.
What makes USD1 stand out is that it’s fully backed by real assets: U.S. Treasuries, cash dollars, and other cash equivalents. This means for every USD1 token out there, there’s an actual dollar or equivalent in reserve, which is meant to keep the price stable and trustworthy. These reserves are audited regularly by an outside accounting firm, according to World Liberty, though details about the firm and the audit schedule haven’t been made public.
The token will launch on popular blockchain platforms: Ethereum and Binance Smart Chain, with plans to expand to other networks later. These platforms are where the token will be bought, sold, and used for transactions.
WHAT’S THE BIG DEAL ABOUT STABLECOINS?
Stablecoins like USD1 are a huge part of the crypto market today. According to CoinGecko, there’s over $237 billion worth of stablecoins currently in circulation. They act as the “digital dollar” inside crypto, helping people trade between different cryptocurrencies or cash out without leaving the crypto ecosystem.
Two of the biggest stablecoins right now are USDT and USDC, issued by Circle. They have become the backbone of crypto trading and DeFi (decentralized finance) apps. For example, Tether alone made over $13 billion in profits last year due to interest earned on their reserves.
USD1 is stepping into this competitive space, aiming to bring something new to the table: the credibility of traditional finance combined with the openness of DeFi.
WHO’S BEHIND USD1?
World Liberty Financial was founded by Donald Trump, his three sons, and Steve Witkoff, a wealthy real estate businessman who is also the father of World Liberty co-founder Zach Witkoff. The venture officially started just before Trump won the 2016 U.S. presidential election.
Trump himself has pushed a pro-crypto agenda during and after his presidency, pledging to loosen U.S. regulations on digital assets and promote crypto innovation. This project is part of that vision. The family-backed company raised over $550 million through token sales, with more than 85,000 participants signing up.
Interestingly, the Trump family could receive up to 75% of the venture’s net revenue, a detail that has sparked some criticism and concerns about conflicts of interest.
WHAT DOES USD1 BRING TO THE TABLE?
World Liberty’s co-founder Zach Witkoff emphasizes that USD1 offers something many other crypto projects don’t: access to the best of both worlds, the security and credibility of traditional finance, plus the speed and openness of decentralized finance.
He says major institutions and sovereign investors can use USD1 for “seamless, secure cross-border transactions,” suggesting it could become a tool for large-scale money movement between countries without relying on banks.
World Liberty also announced that the reserves for USD1 will be held by BitGo, a reputable California-based custodian. BitGo will provide institutional clients with access to liquidity and trading support, which is crucial for a stablecoin hoping to gain serious market adoption.
BUT CAN USD1 COMPETE WITH USDT AND USDC?
Launching a stablecoin isn’t hard, many projects have tried. The real challenge is getting people and businesses to use it regularly.
Kevin Lehtiniitty, CEO of payment infrastructure company Borderless.xyz, points out that building an ecosystem around a stablecoin is the tough part. He wonders whether World Liberty will compete against existing players like Tether and Circle, or try to partner with them.
The market is already crowded, with big names and well-established trust. Besides Tether and USDC, companies like PayPal, Gemini, Ripple, and a few others are all launching their own stablecoins, hoping to claim a piece of this fast-growing market.
WHY DOES THIS MATTER?
Stablecoins have become so important that some experts now call them “systemically important”, meaning problems with stablecoins could affect the whole financial system.
This has led to increasing attention from regulators and lawmakers. The U.S. government is currently working on stablecoin legislation, which many expect to pass soon. Such laws would provide clearer rules for how stablecoins must operate, which could either help or hinder new entrants like USD1.
Treasury Secretary Scott Bessent recently said stablecoins will help keep the U.S. dollar as the world’s dominant reserve currency. At the same time, the Trump administration is actively pushing its crypto agenda, including forming a Strategic Bitcoin Reserve and promoting digital assets more openly.
WHAT’S NEXT FOR USD1?
World Liberty Financial plans to roll out USD1 officially soon. The airdrop is part of their strategy to get the tokens into users’ hands quickly and jumpstart the community.
If they can deliver on promises of security, transparency, and easy use, USD1 could carve out a niche, especially if big institutions and governments start using it for cross-border payments.
However, the project faces some serious hurdles: building trust in a crowded market, navigating political scrutiny, and proving it can deliver real value beyond the hype.
〈Trump’s family-owned Crypto Venture Airdrops New Stablecoin! Can “USD1” Compete with the Giants?〉這篇文章最早發佈於《CoinRank》。
