World Liberty Financial (WLFI), a company associated with Donald Trump, has officially confirmed plans to launch its new cryptocurrency—the USD1 stablecoin. This digital token will be pegged to the U.S. dollar and initially operate on Ethereum and Binance Smart Chain, with future expansions to other blockchains.
A Stablecoin Backed by Traditional Assets
USD1 aims to provide a reliable and transparent digital currency by tying its value to tangible assets such as cash deposits, U.S. Treasury bills, and other liquid holdings. WLFI assures potential investors that reserves will fully back the stablecoin. These reserves will undergo regular audits from an independent third-party accounting firm—though the firm’s name remains undisclosed.
Before publicly announcing the project, WLFI successfully tested USD1 through multiple on-chain transactions on the Binance BNB Chain. On-chain data indicates that public wallets from market maker Wintermute were used during this testing phase.
WLFI has partnered with BitGo, a trusted digital asset custodian, to ensure maximum security and institutional-grade liquidity. BitGo will oversee the management of USD1’s reserves and assist in providing liquidity across supported networks. The company believes this partnership will instill trust among institutions and high-net-worth investors, especially given past issues with algorithmic stablecoins.
WLFI Positions USD1 as DeFi’s Trusted Digital Dollar
WLFI has clarified that it wants USD1 to lead in decentralized finance (DeFi). According to Zach Witkoff, co-founder of WLFI, the coin offers a transparent and secure alternative to traditional and algorithmic stablecoins. He stated, “Major institutions and sovereign investors can use this coin for secure international transactions.”
Witkoff emphasized that USD1 stands apart from anonymous or algorithmic projects by combining the benefits of DeFi with the transparency and reliability of traditional financial systems. “We provide the benefits of DeFi while maintaining the credibility of trusted financial institutions,” he added.
CZ Warns Against Fake USD1 Tokens
Despite WLFI’s stablecoin not being live, scammers have already created fake versions to capitalize on the announcement buzz. Binance CEO Changpeng Zhao (CZ) issued a public warning on X (formerly Twitter), urging users to verify any token before purchasing.
CZ emphasized that the official USD1 stablecoin has not been launched, and any tokens currently trading under that name are fraudulent.
What Comes Next for USD1?
WLFI plans to officially launch USD1 soon, starting with Ethereum and Binance Smart Chain and then rolling it out across additional blockchains. The company has yet to reveal the launch date or the identity of the auditing firm overseeing the reserves.
Until the token officially goes live, investors are advised to stay vigilant. WLFI’s partnership with BitGo and its commitment to asset-backed security signals a serious push to attract institutional and sovereign investors. The big question remains: Can USD1 match or even outshine the popularity of Trump’s meme coin legacy?
