In-Depth Analysis —$USD1 Stablecoin: Mechanism, Market, and Risk Interpretation
USD1 is a US dollar-pegged stablecoin launched in 2025, issued by World Liberty Financial (WLFI), and supported by 60% ownership from the Trump family. As a fiat-backed stablecoin, USD1 achieves a 1:1 dollar peg by holding 100% short-term US Treasury bonds and highly liquid assets, ensuring price stability.
Technically, USD1 supports dual-chain issuance on Ethereum ERC-20 and Binance Smart Chain BEP-20, utilizing Chainlink's CCIP for cross-chain operations, which enhances the liquidity and compatibility of assets. Binance officially launched the USD1/USDT trading pair on May 22, 2025, further increasing market activity.
However, USD1's political background brings about complex compliance risks. The involvement of the Trump family has attracted the attention of regulatory agencies, leading to trading restrictions in certain regions such as the European Union and the United States. In addition, as a centralized stablecoin, USD1 possesses the ability to freeze assets and manage blacklists, which means users should be cautious of potential privacy and freedom restrictions.
In the fiercely competitive stablecoin market, USD1's ability to solidify its position depends on its compliance performance, market acceptance, and technological development. Investors should comprehensively assess its advantages and risks, and participate rationally.
