World Liberty Financial, a cryptocurrency project linked to the Trump family, has officially launched the stablecoin USD1. The token is set to be issued on the Ethereum and Binance Smart Chain blockchains and maintained at a 1:1 ratio to the US dollar. Its reserves are expected to be backed by short-term US Treasury bonds, dollar deposits, and other cash equivalents, which is intended to emphasize the strategy of promoting dollar dominance.
However, reports indicate that the project's investment portfolio contains over $111 million in unrealized losses from cryptocurrency investments, raising concerns about the stability of the new token. This initiative fits into a broader strategy of the Trump family, which, in addition to the stablecoin, is also developing other cryptocurrency ventures, such as the collaboration between Trump Media and Crypto.com in launching ETFs.
World Liberty Financial views USD1 as a tool designed to enable institutional investors to conduct safe and efficient international transactions while strengthening the dollar's position in the global digital asset market.