The cryptocurrency project World Liberty Financial, backed by former U.S. President Donald Trump, has announced plans to launch a new stablecoin called USD1, which will be redeemable for U.S. dollars. The currency will be backed by short-term Treasury bonds and dollar deposits, with BitGo serving as the custodian. It will be minted on the Ethereum and Binance Smart Chain blockchains, and the launch is scheduled for today, with just one hour remaining until the USD1 coin is launched.

The Trump-backed administration aims to promote the use of stablecoins, which are digital tokens designed to maintain a stable value through traditional assets. The USD1 project aims to provide a reliable stablecoin for institutional investors to facilitate cross-border transactions.

While stablecoins enjoy strong support from Washington, they face criticism for their use by criminals in moving money across borders. There are also concerns about their potential negative impact on the financial system during times of crisis.

World Liberty Financial was established last September as a decentralized finance project, aiming to provide financial services without intermediaries USD1