Coinbase has launched World Liberty Financial's USD1 stablecoin, which is supported by President Donald Trump and his son, allowing U.S. users to trade the new digital dollar alongside USDC and USDT.
Coinbase confirmed the listing on its blog and X posts. World Liberty Financial co-founder Eric Trump also shared the news on X, promising more updates 'soon.'
Coinbase adds USD1 and begins phased trading
U.S. users can now access and trade USD1 on Coinbase. The exchange has officially added it as an ERC-20 token on the Ethereum network. This is an important step for World Liberty Financial, the largest supporter and developer of USD1, as it enters one of the world's largest and most regulated cryptocurrency exchanges.
Coinbase stated that the launch of USD1 depends on meeting liquidity requirements, and therefore trading will start gradually. This move will allow the exchange to monitor supply and demand, prevent sudden price fluctuations, and ensure a smooth experience for both buyers and sellers. Investors will be able to enter and exit confidently without facing losses, as this approach aligns with the platform's overall policy of maintaining market order.
Coinbase also warns users not to send USD1 through networks other than Ethereum, as this could result in significant losses. This warning will help new stablecoin users who are unaware of the consequences of sending tokens across incompatible blockchains. It also indicates Coinbase's commitment to transparency and protecting user rights as it introduces high-profile assets like USD1 to its platform.
U.S. users can now trade three major stablecoins on Coinbase: USDC, Tether's USDT, and USD1. The addition of USD1, supported by the Trump family, provides users with more trading options and intensifies competition among stablecoins. By allowing users to bypass traditional banking restrictions, it also shifts the focus to the rapidly growing digital dollar market.
World Liberty Financial increases supply of USD1 by $1 and plans to launch a rewards program
According to a recent report by Cryptopolitan, World Liberty Financial recently minted USD1 stablecoins worth $205 million. This issuance brings the total supply of USD1 to a record $2.4 billion, marking the largest increase since the end of April. The stablecoin was launched earlier this year and currently has a market cap of $2.39 billion, ranking as the sixth largest stablecoin globally.
The issuance of 205 million USD1 tokens aligns with remarks made by Federal Reserve Vice Chairman Bowman at a blockchain seminar in Wyoming. According to Cryptopolitan, Wyoming became the first state in the U.S. to issue stablecoins earlier this week.
Most of the supply of USD1 comes from strategic partners and large capital holders, including a $2 billion investment from Abu Dhabi's MGX, which trades USD1 tokens on the Binance platform. World Liberty Financial is committed to developing a stable digital dollar that can compete with USDC and USDT.
USD1 is fully backed 1:1 by U.S. dollars and U.S. Treasury bonds. This ensures that the token represents real, tangible assets, making it more reliable for holders. World Liberty Financial has also disclosed the Ethereum contract address for USD1, allowing anyone to verify its total supply, track transactions, and confirm that its supporting reserves actually exist.
The company also announced a loyalty points program for USD1 users. This program will reward users for trading, holding, staking, and participating in approved decentralized finance (DeFi) protocols. The program will incentivize users to engage with USD1 and earn rewards through financial activities that increase liquidity.
World Liberty Financial's Ethereum-based DeFi platform is set to launch soon and will integrate USD1, offering users lending services similar to other Ethereum-based decentralized finance applications. The project aims to create an ecosystem where users can easily deposit, borrow, and earn rewards with USD1. People will no longer rely on traditional banking channels, and funds will flow more quickly and efficiently.
