The Trump family announces the launch of the stablecoin USD1, fully backed by US dollars, treasury bonds, and other cash equivalents.
The cryptocurrency company World Liberty Financial (WLFI), supported by US President Trump, officially announced yesterday the launch of the stablecoin USD1, pegged 1:1 to the US dollar.
This stablecoin is fully backed by US dollars, short-term US treasury bonds, and other cash equivalents, and the well-known custodial institution BitGo is responsible for reserve management.
WLFI officially emphasizes that USD1 "is not a game, nor a gimmick, it is a true stablecoin," aimed at providing safe and efficient cross-border transaction solutions for institutional and sovereign investors.
The core advantages of USD1 are as follows:
1. 100% reserve backing: Fully collateralized by US dollars, short-term US treasury bonds, or cash equivalents, ensuring a 1:1 redemption.
2. Multi-chain deployment: Initially issued on Ethereum and Binance Smart Chain (BSC), with potential expansion to more public chains in the future.
3. Institutional-grade custody: Asset custody services provided by BitGo, ensuring reserve transparency and security.
4. Audit mechanism: WLFI commits to regular audits of reserves by a third-party accounting firm, though the specific auditing firm has not yet been disclosed.
The global market size for stablecoins has exceeded $238 billion, currently dominated by Tether (USDT) and Circle (USDC). However, WLFI's entry means that the stablecoin market is welcoming new challengers.
However, some analysts point out that USD1 needs to build a complete payment ecosystem to compete with existing giants.
At the policy level, the Trump administration seems to have already shown potential support for stablecoin regulatory legislation, having previously signed an executive order to establish a Bitcoin strategic reserve for the US.
Current market predictions generally suggest that with the launch of the USD1 stablecoin by the Trump family, the US government may accelerate the legislative process related to stablecoins in the coming months.
Once these bills are implemented, they will not only bring a clearer regulatory environment to the stablecoin market, enhancing industry transparency, but may also attract more institutional funds and retail investor groups to participate.
However, whether USD1 can establish a foothold in the fiercely competitive stablecoin market still depends on its ecosystem construction and regulatory stance.