USD1 is a rapidly emerging fiat-backed stablecoin with a market cap exceeding $2.2 billion, owned and operated by President Donald Trump's family, generating significant controversy and attention in the global cryptocurrency market.
Launched by World Liberty Financial in 2025, USD1 operates multi-chain, fully backed by cash and U.S. Treasury bonds, aiming for transparency and high liquidity, while deeply integrating into the DeFi ecosystem and global finance.
MAIN CONTENT
USD1 is a stablecoin controlled by the Trump family with a rapidly growing market cap exceeding $2.2 billion.
Operating on a multi-chain platform, 100% backed by USD and U.S. Treasury bonds, transparent reserves.
Widely applicable in cross-border payments, DeFi, and diverse financial transactions.
Why is USD1 attracting attention?
USD1 attracts the financial community and cryptocurrency users not only for its rapid capitalization growth but also due to the Trump family's involvement, owning 60% of the shares and receiving 75% of the revenue. This is the first time a stablecoin is closely tied to a powerful politician, sparking significant political and financial debates.
In the context of a rapidly developing stablecoin market with players like USDT and USDC, USD1 emerges as a fresh wind thanks to its transparent backing mechanism, multi-chain trading ability, and low transaction fees, promising to expand its market share in the global DeFi sector.
What is USD1? Who is behind its issuance?
USD1 is a stablecoin pegged at a 1:1 ratio with the U.S. dollar based on a fiat-backed mechanism, meaning the total amount of Tokens is fully backed by cash and U.S. Treasury bonds. It is issued by World Liberty Financial (WLF), a company founded in 2024 in the U.S. with the goal of becoming the stablecoin platform representing the value of the United States.
The major difference is that the Trump family owns 60% of WLF shares and enjoys most of the revenue from the Token, where Eric Trump and Donald Trump Jr. serve as 'Web3 Ambassadors', and Donald Trump holds the role of 'Chief Crypto Advocate'. This is the first stablecoin closely linked to a politically influential figure.
As of mid-2025, the market cap of USD1 has exceeded $2.2 billion, ranking among the top 5 stablecoins in the world with a presence on Ethereum, BNB Chain, and Tron platforms.
How does USD1 operate?
USD1 operates under a model backed 100% by fiat assets, including cash and U.S. Treasury bonds held by BitGo – a globally recognized digital asset custodian. WLF commits to transparency through regular reserve reports, with the latest full backing ratio verified in April 2025.
We are committed to building USD1 as a transparent, sustainable cryptocurrency that can be quickly converted, serving global users in the DeFi ecosystem. Eric Trump, Web3 Ambassador, World Liberty Financial, 04/2025
Users can convert USD1 to USD at any time at a 1:1 exchange rate through WLF's partner system. USD1 supports multi-chain (Ethereum ERC-20, BNB Chain BEP-20, Tron TRC-20), allowing integration into various DeFi and digital finance applications, with Bridge and Swap features under development.
USD1 transactions are fully processed on-chain, quickly, low-cost, and operate 24/7 cross-border, meeting the payment and transaction needs of individuals, businesses, and financial institutions.
What are the standout features of USD1?
USD1 possesses numerous outstanding advantages that help it quickly become a notable choice in the competitive stablecoin market:
100% backed by USD and safe Treasury bonds, protected by BitGo.
Multi-chain capability with Ethereum, BNB Chain, and Tron since launch.
Instant on-chain transactions, supporting fast cross-border payments at low costs.
Transparent monthly reserve reporting, helping to build community trust and management.
Easily integrated with DeFi, serving as an intermediary asset for loans, liquidity, and complex financial transactions.
What are the practical applications of USD1?
USD1 is designed for versatility, widely serving personal, corporate, and financial institution needs as follows:
Cross-border payments
Users can make international money transfers quickly in just a few seconds without going through intermediary banks, at low costs and operating 24/7, including holidays.
Daily transactions and payments
USD1 supports payments for goods and services, P2P transactions, with transparency and not controlled by central organizations or geographic restrictions.
Borrowing and lending in DeFi
USD1 is collateral and an asset for lending on platforms like Aave and Compound, helping to earn interest and use capital more effectively.
Transactions and providing liquidity
USD1 is popular in DEXs like Uniswap, PancakeSwap, and SunSwap, allowing Token swaps and providing liquidity for rewards.
Global USD access
Anyone with a cryptocurrency wallet can maintain stable USD value in countries with high inflation or without traditional banking.
Applications for organizations and businesses
USD1 allows businesses to easily make international payments and integrate accounting systems, creating an on-chain tool that aligns with off-chain processes.
What are the political implications and controversies surrounding USD1?
The Trump family's ownership of USD1 is a major controversial factor as in May 2025, the MGX fund in Abu Dhabi used USD1 to invest $2 billion in Binance – an international transaction with far-reaching implications, raising questions about financial ethics and conflicts of interest.
We must carefully examine the power and financial relationships surrounding USD1 to avoid market manipulation and the exploitation of stablecoins for personal gain. Elizabeth Warren, U.S. Senator, 05/2025
Divided market: Supporters see USD1 as an embodiment of the United States' financial independence, while opponents are concerned about the politicization of DeFi, undermining the neutrality and transparency of the stablecoin.
How does USD1 compare to other major stablecoins?
USD1 quickly ranks among the top stablecoins but needs to be compared with major players like USDT, USDC, and FDUSD to understand its position and differences:
Criteria USD1 USDT USDC FDUSD Issuer World Liberty Financial (Trump family holds 60%) Tether Holdings Ltd. Circle Internet Financial First Digital Trust (Hong Kong) Backing mechanism 100% USD & U.S. Treasury bonds USD, bonds, and equivalent assets USD & U.S. Treasury bonds USD & U.S. Treasury bonds Transparency & auditing Monthly reports, not publicly disclosed auditing unit Low transparency, not fully public Audited by Grant Thornton Independent audit Supported chains Ethereum, BNB Chain, Tron Most popular chains Multi-chain (Ethereum, Base, Solana…) Ethereum, BNB Chain Convertibility 1:1 Committed by WLF Limited, time-consuming Fast Fast Growth rate Very fast, >$2 billion in 2 months Stable ~115 billion USD Lightly decreased by about 32 billion USD Growth ~4-5 billion USD Political contacts Trump family None Related to BlackRock & Coinbase Unclear Controversy Conflicts of interest, politicization Lack of reserve transparency Legal pressure from SEC Less controversial, centralized
Summary
USD1 is not just a regular fiat-backed stablecoin but also a unique combination of blockchain technology, traditional values, and political influence with the involvement of the Trump family. With a rapidly growing market cap of over $2 billion, and amidst controversies regarding power and conflicts of interest, USD1 is set to challenge the boundaries between DeFi and centralized power in the coming decade.
Technically, USD1 has a solid foundation with transparent backing, fast transaction speed, and multi-chain capability, meeting diverse financial needs from individuals to institutions, ready to compete with today's leading stablecoins.
Frequently Asked Questions
What is USD1?
USD1 is a fiat-backed stablecoin, 100% backed by cash and U.S. Treasury bonds, issued by World Liberty Financial controlled by the Trump family.Who is behind the issuance of USD1?
World Liberty Financial – an American company established in 2024, with 60% of the shares held by the Trump family, with direct involvement from Eric Trump and Donald Trump Jr.What are the standout features of USD1?
Multi-chain, fast on-chain transactions, transparent backing, low fees, and deep integration into the DeFi ecosystem and international payments.What controversies surround USD1?
Political connections to powerful politicians, conflicts of interest, and use in large international transactions raise concerns about market manipulation.How does USD1 compare to USDT and USDC?
USD1 is rapidly developing, more transparent than USDT but still faces significant political controversies, directly competing with leading stablecoins in terms of backing and multi-chain capabilities.
Source: https://tintucbitcoin.com/usd1-la-gi/
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