World Liberty Financial (WLFI) announced a new stablecoin digital dollar named USD1. The Donald Trump-backed firm and his family say that this stablecoin will be set at a 1:1 ratio with the U.S. dollar, and supported by cash, bank deposits, and short-term U.S. government securities.
According to the press release, USD1’s reserves will be stored by BitGo, a crypto custody firm. BitGo Prime will handle trading for the stablecoin. The token will first launch on Ethereum and BNB Chain, with plans to expand to other blockchain networks later.
“USD1 provides what algorithmic and anonymous crypto projects cannot—access to the power of DeFi underpinned by the credibility and safeguards of the most respected names in traditional finance,” said Zach Witkoff, WLFI co-founder.
WLFI warned that all the USD1 tokens in circulation now are unofficial and may be counterfeit. The firm emphasized that the stablecoin is not exchangeable yet and advised investors to exercise caution.
The developers behind WLFI, Zachary Folkman and Chase Herro, gained attention when their project became one of the first crypto ventures associated with Trump.WLFI aims to develop a marketplace on blockchain where users will be able to borrow, lend, and trade stablecoins.
BitGo CEO Mike Belshe praised the partnership, saying, “Our clients demand both security and efficiency, and this partnership with WLFI delivers both—combining deep liquidity with the assurance that reserves are securely held and managed within regulated, qualified custody”.
WLFI is also partnering with Sui, Ondo Finance, Chainlink, and Aave to explore how DeFi can work with traditional finance. The company says it wants to make blockchain finance more stable and reliable for big investors.
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