Finance, World Liberty Financial, Stablecoin, Donald Trump, BitGo The USD1 token will likely be absolutely backed by U.S. authorities securities and money, with BitGo offering custody companies for the reserves.
World Liberty Financial (WLFI), the decentralized finance protocol backed by U.S. President Donald Trump and his household, confirmed on Tuesday its plans to launch a U.S. dollar-backed stablecoin.
USD1 is anchored to $1 and will likely be absolutely backed by short-term U.S. governemnt securities, U.S. greenback deposits, and different money equivalents. The reserves will likely be custodied at BitGo, whereas BitGo Prime, the agency’s brokerage service will present liquidity for the token.
The stablecoin will likely be first out there on Ethereum and BNB Chain, with plans to broaden to different networks, the protocol stated.
The announcement got here after crypto observers brought attention to check transactions with a token named World Liberty Financial USD (USD1) on Ethereum and BNB Chain, with BitGo and market maker Wintermute being concerned in transfers.
“USD1 gives what algorithmic and nameless crypto tasks can not—entry to the facility of DeFi underpinned by the credibility and safeguards of probably the most revered names in conventional finance,” stated Zach Witkoff, WLFI co-founder. “We’re offering a digital dollar stablecoin that sovereign investors and major institutions can confidently integrate into their strategies for seamless, secure cross-border transactions.”
WLFI, a challenge spearheaded by Zachary Folkman and Chase Herro, made a splash final yr as one of many first crypto tasks having fun with the backing of Trump. The protocol goals to supply a blockchain-based market the place customers can borrow and lend cryptocurrencies, create liquidity swimming pools and transact with stablecoins.
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