Confirming online rumors, World Liberty Financial Inc. has unveiled USD1, a stablecoin that is redeemable at a 1:1 ratio for the U.S. dollar and fully backed by short-term U.S. Treasuries, cash deposits, and similar assets.
USD1 will initially be launched on the Ethereum (ETH) and Binance (BNB) Smart Chain, with intentions to broaden its reach to other blockchains, as stated in a recent communication.
WLFI promotes USD1 as a reliable and institution-friendly option compared to algorithmic and undercollateralized stablecoins. The firm has highlighted its commitment to transparency, with third-party audits confirming that reserves are adequate to cover the token’s circulating supply.
This announcement validates earlier speculations that WLFI had rolled out its USD1 stablecoin on the BNB Chain, following blockchain analytics that revealed interactions between its contract and a wallet associated with Wintermute.
Although the launch took place approximately three weeks ago, neither World Liberty Financial nor the Trump family had provided an official statement until now.
BitGo as custodian
BitGo, a prominent digital asset custodian, will manage the reserves for USD1. This firm, which caters to institutional clients around the globe, will also offer trading and liquidity solutions through BitGo Prime.
“The introduction of USD1 signifies a major step forward in digital assets that are ready for institutional engagement,” remarked BitGo CEO Mike Belshe, underscoring that the stablecoin merges substantial liquidity with regulated, qualified custody.
In contrast to stablecoins that depend on intricate yield-generating strategies, USD1 emphasizes transparency and security. WLFI aims for the stablecoin to serve as a trusted choice for institutions eager to explore DeFi while guaranteeing complete collateralization.
“USD1 delivers what algorithmic and anonymous crypto projects fail to provide—access to the capabilities of DeFi supported by the reliability and protections of the most reputable names in traditional finance,” stated WLFI co-founder Zach Witkoff.
He further noted that sovereign investors and institutions can utilize USD1 for safe cross-border transactions without incurring additional risks.