Lucía Peña
World Liberty Financial (WLFI), a decentralized finance (DeFi) protocol supported by U.S. President Donald Trump and his family, officially confirmed on Tuesday its plans to introduce USD1, a stablecoin pegged to the U.S. dollar.
USD1 will maintain a 1:1 peg with the U.S. dollar, backed by short-term U.S. government securities, dollar deposits, and other cash-equivalent assets. WLFI has partnered with BitGo for custody services, ensuring the security of its reserves. Additionally, BitGo Prime—BitGo’s brokerage arm—will facilitate liquidity for USD1.
Initially, the stablecoin will be deployed on Ethereum and BNB Chain, with expansion plans to include other blockchain networks in the future.
Market Observers Noticed Early USD1 Transactions
The announcement follows speculation within the crypto community after test transactions involving USD1 were detected on Ethereum and BNB Chain. Transfers linked to BitGo and market maker Wintermute fueled curiosity before the official reveal.
Institutional-Grade Stability for DeFi
WLFI’s co-founder, Zach Witkoff, emphasized that USD1 offers trust and stability that algorithmic or anonymous stablecoins lack.
“USD1 delivers the benefits of DeFi with the credibility and safeguards of leading traditional financial institutions. We are introducing a digital dollar stablecoin designed for sovereign investors and major financial players, ensuring seamless and secure cross-border transactions,” Witkoff stated.
WLFI’s Growing Influence in Crypto Markets
Founded by Zachary Folkman and Chase Herro, World Liberty Financial gained significant attention in 2024 as one of the first crypto projects publicly supported by Trump. The protocol aims to revolutionize decentralized finance by offering a blockchain-based marketplace for borrowing, lending, liquidity pools, and stablecoin transactions.
With USD1’s introduction, WLFI is positioning itself as a major player in the regulated stablecoin market, bridging DeFi and traditional financial systems.
