Donald Trump speaks at the Bitcoin Conference in Nashville. Photo: Washington Post/Getty Images
The move comes as the Trump administration ramps up support for digital assets that play a key role in cryptocurrency transactions.
According to the announcement on March 25, USD1 will be 100% backed by short-term US government bonds, USD deposits and cash equivalents. BitGo Inc. will act as custodian of the collateral assets, while the stablecoin will be issued on two blockchains, Ethereum and Binance Smart Chain. However, World Liberty has not revealed the official launch date.
“USD1 offers something that anonymous or algorithmic crypto projects cannot offer – a decentralized finance (DeFi) solution backed by the most reputable financial institutions,” said Zach Witkoff, co-founder of World Liberty. “We offer a digital stablecoin that sovereign wealth funds and large institutions can trust to use for secure and seamless cross-border transactions.”
According to Bloomberg, World Liberty had discussed the possibility of a partnership with Binance Holdings Ltd. to develop a stablecoin. However, Binance founder Changpeng Zhao (CZ) denied the rumor in 2023 after he admitted to violating anti-money laundering regulations, leading to Binance being accused of supporting criminal and terrorist organizations, including Hamas.
CZ later stated on social media X that he and Binance “have no business dealings” with World Liberty. Binance also declined to comment on the matter.
Both the Trump administration and the US Congress are looking to shape the future of stablecoins, with the goal of integrating them into the global payment system. Two bills are being considered in the House and Senate to expand the role of stablecoins in traditional finance, with strong support from Mr. Trump.
Interest from Washington has spurred money into the stablecoin sector, even as other parts of the cryptocurrency market struggle. The total value of stablecoins on the market has now surpassed $230 billion.
Comment (0)