The USD1 token (or World Liberty Financial USD) is a stablecoin launched in March-April 2025 by World Liberty Financial, linked to the Trump family.
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💵 What is USD1?
Type: A stablecoin fully backed by financial assets such as US dollar cash and short-term US Treasury bonds managed alongside money market instruments.
Objective: To maintain a value almost fixed at 1 USD, with the potential for instant redemption or use within DeFi systems.
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🏛️ Institutional and Political Aspects
Issuer: World Liberty Financial, founded with direct involvement from the Trump family (60% of the company).
Major Deals: USD1 was used to finance a $2 billion deal from MGX to Binance, gaining it notoriety and highlighting its political connections.
Ethical and Regulatory Criticisms: Experts warned of the risk of potential political conflicts of interest, prompting legislative institutions in Washington to review regulations governing stablecoins.
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✔️ Features and Differences
Features USD1
Pegged to the Dollar Cash and Treasury reserves ensure stability at $1
Processing Fees Reports indicate a zero-fee policy upon issuance/redemption.
Regulatory Aspects Issued through BitGo Trust, transparency mechanism via Chainlink PoR.
Operating Networks Currently on Ethereum and BNB, with plans to expand to TRON and others.