On 25 March 2025, Donald Trump, President of the United States, and his cryptocurrency venture, World Liberty Financial, officially announced the launch of USD1, a new stablecoin. This dollar-pegged digital currency is now operational on the Ethereum and Binance blockchains, backed by U.S. Treasury bills, dollar deposits, and other cash equivalents, as detailed in the company’s statement released on Tuesday. USD1 marks the fourth digital currency from the Trump family within the past year, following the WLFI token and the memecoins associated with Donald and Melania Trump.
World Liberty Financial has experienced substantial growth in recent times, having sold tokens worth a total of $550 million, with 75% of the proceeds directed to a Trump-affiliated business entity. According to Zach Witkoff, co-founder of World Liberty, USD1 offers a digital dollar stablecoin that sovereign investors and major institutions can confidently integrate into their strategies for seamless and secure cross-border transactions. The president’s foray into the cryptocurrency market aligns with his administration’s deregulation efforts, occurring against a backdrop where the market capitalisation of dollar-pegged stablecoins has surged by over 46% in the past year, according to data from CryptoQuant.
USD1 enters a crowded marketplace dominated by Tether (USDT) and Circle (USDC), while also contending with emerging competitors such as the PayPal-, Gemini-, Ripple-, and Robinhood-backed USDG. Speaking at the Digital Assets Summit, Trump asserted that the industry is poised to trigger an economic growth explosion, with stablecoins facilitating the resurgence of the U.S. dollar and extending its global dominance. Treasury Secretary Scott Bessent, speaking at the White House Crypto Summit in March, similarly emphasised that the dollar would remain the world’s preeminent reserve currency, with stablecoins playing a pivotal role in achieving this objective.
Sources:
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Ben Weiss
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Tanaya Macheel,MacKenzie Sigalos
