World Liberty Financial Inc. (WLFI), the crypto venture backed by President Donald Trump, has been testing a USD-pegged stablecoin.
A stablecoin is a type of cryptocurrency that attempts to maintain a stable value by being pegged to a relatively stable asset such as a fiat currency or a commodity.
Called USD1, the stablecoin has been launched on both the Ethereum chain and Binance’s BNB Chain. The project’s smart contract was deployed on both chains 20 days ago.
On March 24, Binance’s founder and former CEO Changpeng “CZ” Zhao welcomed the stablecoin project on the BNB chain.
CZ further claimed that he was told of several scam coins with the same coins being created. WLFI responded that "USD1 is not currently tradable" and cautioned against scams.
On March 25, WLFI released an official statement regarding the stablecoin plan. USD1 will be 100% backed by short-term U.S. government treasuries, USD deposits, and other cash equivalents, it read.
While the crypto custodian BitGo will take care of USD1 reserves, its prime brokerage service BitGo Prime will provide liquidity and trading services to institutional clients hoping to trade USD1.
WLFI targeting a growing stablecoin market
Notably, the U.S. Senate Banking Committee approved the Guiding and Establishing National Innovation for U.S. Stablecoins or GENIUS bill on March 13.
The bill aims to provide the first federal regulations for stablecoins and is supposed to reach a Senate vote in a matter of weeks. If approved, it would legalize the issuance and trading of stablecoins in the U.S.
As per DefiLlama, the market capitalization of the stablecoin market stood at $232.38 billion as of March 24. The total stablecoin market grew by 63% from $138 billion to $225 billion between February 2024 and February 2025, as per a recent report.