A decentralized finance initiative closely associated with former US President Donald Trump has recently announced its plan to launch USD1, a stablecoin pegged to the US dollar.
As reported on March 25, USD1 will initially be introduced on the Ethereum and Binance Smart Chain networks, with intentions for additional blockchain integrations in the future.
This digital currency is engineered to maintain a stable value of $1 and will be backed by reserves of US Treasury bills, fiat currency deposits, and various short-term cash equivalents.
The project has stated that regular audits by an independent third-party accounting firm will verify the backing of the stablecoin.
Additionally, it was confirmed that BitGo, an independent and regulated custodian, will manage and secure the reserves for USD1. This arrangement is designed to provide institutional clients with a safe, insured, and regulated means of accessing the stablecoin.
This announcement comes shortly after a cautionary notice regarding fake versions of the USD1 token being circulated online. The project made it clear that the stablecoin has not yet been launched on any trading platforms.
However, it remains uncertain whether the stablecoin has become publicly available following the latest updates.
Competing with USDT and USDC
Stablecoins serve as a means for users to protect their funds from market volatility, facilitate cross-border transactions, and access dollar-like assets in regions with currency limitations.
As per recent data, the overall market capitalization of the stablecoin sector surpasses $233 billion, and analysts predict that the market will continue to thrive.
Thus, USD1 enters a competitive landscape led by established entities such as Tether’s USDT and Circle’s USDC.
Nonetheless, a co-founder believes that USD1 has a unique advantage over these competitors. He emphasizes its hybrid model, which merges decentralized finance with the oversight and credibility found in traditional financial systems.
In his own words:
“USD1 offers what algorithmic and anonymous cryptocurrency projects cannot…we are providing a digital dollar stablecoin that sovereign investors and major institutions can confidently incorporate into their strategies for smooth, secure cross-border transactions.”
Mentioned in this article
