Trump-supported group World Liberty launches US dollar-backed cryptocurrency, USD1, into circulation
World Liberty Financial's USD1 Stablecoin Gains Momentum with BitGo as Custodian
World Liberty Financial Inc. (WLFI), a company with ties to the Trump family, is set to launch a USD1 stablecoin, a digital currency pegged to the U.S. dollar. This stablecoin, designed for both institutional and retail use, will operate across multiple blockchains, including Ethereum and BNB Smart Chain.
The reserves for the USD1 stablecoin will be held by BitGo Trust Company, a digital asset custody firm renowned for its institutional-grade solutions. BitGo's role is crucial, as it ensures the stablecoin's full collateralization and liquidity.
WLFI's choice of BitGo as custodian is strategic. BitGo's reputation for secure, insured, and regulated custody services aligns with WLFI's objectives for transparency and trustworthiness. This partnership is expected to boost investor confidence and mitigate the risk of insolvency or unbacked issuance, given the stablecoin's rapid growth and significant institutional adoption.
Here's a breakdown of the key players:
- World Liberty Financial: Issuer and manager of the USD1 stablecoin
- BitGo Trust Company: Custodian holding the reserves backing the USD1 stablecoin
- USD1 Stablecoin: A fiat-backed crypto asset pegged to the U.S. dollar
As the stablecoin landscape becomes increasingly competitive, BitGo's custody provides the essential reserve backing, confidence, and regulatory compliance necessary for the USD1 stablecoin's expansion.
Notably, the Trump-affiliated firm's stablecoin is separate from the entity that issued the $TRUMP meme coin in January. Justin Sun, founder of the TRON network, has a close association with BitGo, given BitGo's role as the curator of wBTC, the popular wrapped version of Bitcoin, and BitGo's recent plans to transfer much of that responsibility to BitGlobal, an entity associated with Justin Sun.
Last week, WLFI announced it had raised a total of $550 million in sales of the WLFI token. The stablecoin's launch is expected to take place shortly, with changes in the GENIUS Act stablecoin legislation providing hints about its plans. If it stays on track, stablecoin legislation is expected to be finalized by the end of April.
[1] Source: CoinDesk [4] Source: Bloomberg
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