Malaysia
Singapore
Philippines
Stay connected with BizTech Community—follow us on Instagram and Facebook for the latest news and reviews delivered straight to you.
Donald Trump is once again the center of attention in the crypto world, this time with the launch of the latest stablecoin, USD1, through his family’s company, World Liberty Financial (WLFI).
The official announcement on March 25, 2025, marks Trump’s ambitious move to strengthen his position in the digital asset industry while offering new alternatives in the increasingly competitive stablecoin ecosystem.
Table of Contents
USD1: A Stablecoin with Strong Support
USD1 is designed as a stablecoin pegged 1:1 to the US dollar, fully backed by short-term US government debt securities, dollar deposits, and other liquid assets.
This approach aims to provide stability and confidence, especially for institutional investors and large entities, which are the main targets of this project.
Unlike algorithmic stablecoins, which are often criticized for their volatility, WLFI emphasizes that USD1 offers reliability through transparent and regularly audited reserves by third-party firms.
This stablecoin was first launched on the Ethereum and Binance Smart Chain (BSC) networks, with plans to expand to other blockchains.
This network selection reflects WLFI’s strategy of reaching out to the established crypto ecosystem, while utilizing infrastructure that supports fast and efficient transactions.
BitGo: The Security Pillar of USD1
To guarantee security and liquidity, WLFI has partnered with BitGo as the official custodian of the USD1 reserve. BitGo, a California-based company long known for managing institutional digital assets, brings a strong reputation with regulated and insured services.
BitGo CEO Mike Belshe welcomes the partnership as an important breakthrough.
“USD1 is a step forward in creating an institution-ready crypto ecosystem. We combine deep liquidity with high levels of security, ensuring reserves are managed in trusted custody,” said Belshe.
BitGo’s involvement also adds legitimacy to the project, given that various large institutions have trusted the company to manage assets worth billions of dollars.
Focus on Institutions, Not Retail
Unlike many crypto projects that target retail traders, WLFI explicitly states that USD1 is aimed at institutional investors and big-thinking entities, such as sovereign wealth funds.
Zach Witkoff, co-founder of WLFI, emphasized that this stablecoin is designed to facilitate secure and efficient cross-border transactions.
“We offer a digital dollar that large institutions can trust for their financial strategies without the risks that often arise in anonymous DeFi projects or algorithm-based stablecoins,” Witkoff said.
This approach is in line with WLFI’s vision of bridging traditional finance (TradFi) with decentralized finance (DeFi), an ambition often echoed by Trump during his pro-crypto campaign.
Trump and the WLFI Project DNA
Trump’s connection to WLFI is not merely symbolic. The company claims that USD1 and its entire ecosystem are inspired by the former US president’s philosophy of building a strong, independent financial system oriented towards US dollar dominance.
In addition to USD1, WLFI also plans to develop a more inclusive DeFi governance and protocol platform to make blockchain technology more accessible to the wider community.
Trump, who often referred to himself as the “crypto president” during his campaign, seems to want to make WLFI a tool to maintain the hegemony of the US dollar in the digital era.
In his virtual speech at the Digital Asset Summit in New York in March 2025, he stated that stablecoins could “trigger an explosion of economic growth” and expand the dominance of the US dollar globally.
Competition and Challenges Ahead
The launch of USD1 puts WLFI in direct competition with stablecoin giants such as Tether (USDT) and USD Coin (USDC), which have already dominated the market with billions of dollars in capitalization.
According to data from CoinGecko, the total value of stablecoins in circulation had exceeded US$237 billion by early 2025, showing how large and competitive this market is.
However, as revealed by Kevin Lehtiniitty, CEO of Borderless.xyz, launching a stablecoin is just the first step.
“Building an ecosystem that adopts these stablecoins is a much bigger challenge,” he said.
The question arises: will WLFI compete fiercely with other American players, or will it seek collaboration to strengthen its position?
On the other hand, sentiment on X shows both enthusiasm and skepticism.
One X user, @0xCryptoBeat, called the launch of USD1 “big bullish news for crypto,” while @molly0xFFF questioned the potential for a conflict of interest, given Trump is a president who supports his own family’s stablecoin.
Impact and Big Questions
The launch of USD1 comes amid a push by the Trump administration to support stablecoin legislation in the US, such as the GENIUS Act, which has received bipartisan support in the Senate.
If passed, this law could give stablecoins greater legitimacy and allow banks to issue similar assets.
However, concerns have arisen. As quoted by Cointelegraph, some observers highlighted the risk of a conflict of interest, mainly because the Trump family controls 60% of WLFI’s shares.
“If foreign entities invest in USD1, this could be an entry point to influence US policy indirectly,” they wrote.
Conversely, supporters of the project, such as Chris Barrett of Chainlink, praised USD1 as a step that strengthens the US dollar’s position on the global stage.
“Stablecoins will make the dollar’s dominance even more difficult to shake,” he said.
Will USD1 be a game changer?
With the promise of transparency, institutional-grade security, and support from big names like Trump and BitGo, USD1 has the potential to shake up the stablecoin market.
However, its success will depend on WLFI’s ability to build trust and adoption amid fierce competition and intense scrutiny from regulators and the crypto community.
The biggest question now is: Will USD1 be a revolutionary tool that strengthens the US digital economy or just an ambitious project that benefits certain parties?
The answer may only become apparent in the next few months when the market and the real world begin to test USD1.