From President to Crypto Pioneer: Trump's USD1 Token Emerges

TLDR

Table of Contents

World Liberty Financial (WLFI), backed by President Donald Trump, has deployed a dollar stablecoin called USD1 on Ethereum and BNB Chain
Blockchain data shows USD1 tokens interacting with addresses linked to Wintermute and BitGo
The token has a current supply of approximately 3.5 million on each network
WLFI has warned that USD1 is “not currently tradable” and cautioned users about potential scams
The project has reportedly raised $550 million through token sales of its governance token $WLFI

Testing Phase Underway

World Liberty Financial (WLFI), the decentralized finance platform backed by U.S. President Donald Trump and his family, appears to be testing its dollar stablecoin before a public launch. Blockchain watchers noticed activity with a token labeled as World Liberty Financial USD (USD1) on Monday.

The token was deployed earlier this month on both Ethereum and BNB Chain networks. Data shows a series of transactions occurring with the token over the past couple weeks.

Addresses linked to major crypto firms have interacted with the token. These include Wintermute, a large digital asset trading firm, and BitGo, a crypto custodian.

The supply currently stands at approximately 3.5 million tokens on each blockchain. This suggests controlled testing rather than a full public rollout.

Former Binance CEO Changpeng “CZ” Zhao brought attention to the token. He posted a “welcome” message with a screenshot of the USD1 BscScan profile to his 10 million followers on X.

WLFI quickly responded to the growing attention. The project posted on X that “USD1 is not currently tradable” and warned users to “beware of scams.”

The Trump Crypto Empire

World Liberty Financial represents one piece of President Trump’s growing crypto portfolio. His ventures now include NFTs, a memecoin, and this stablecoin project.

WLFI was announced in August and is focused on decentralized finance (DeFi). The project aims to create a platform where users can borrow and lend cryptocurrencies.

The project’s leadership includes multiple Trump family members. Barron, Eric, and Donald Jr. serve as “Web3 Ambassadors” for the platform.

Other key figures include Steve Witkoff, a Trump loyalist and real estate developer. His sons Alex and Zach are listed as cofounders of the project.

The technical leadership comes from DeFi developers Zak Folkman and Chase Herro. Both were previously involved with Dough Finance, a project that experienced a $2 million hack in July.

Stablecoin Business Model

Stablecoins represent one of the fastest-growing sectors in cryptocurrency. They serve as digital tokens pegged to traditional currencies, predominantly the U.S. dollar.

These tokens are widely used as trading pairs on crypto exchanges. They allow traders to move in and out of volatile assets without converting back to traditional banking systems.

The business model can be very profitable for issuers. Companies like Tether (USDT) have reported enormous profits from their stablecoin operations.

Stablecoin issuers typically back their tokens with cash or Treasury bills. While users don’t receive interest on their holdings, the issuers can earn returns on these reserves.

Tether reportedly earned $13 billion in 2024 with only about 100 employees. This level of efficiency makes stablecoin issuance an attractive business proposition.

The Trump administration has shown support for stablecoin development. Treasury Secretary Scott Bessent has stated that stablecoins play a key role in preserving the U.S. dollar’s position as a global reserve currency.

WLFI has already seen success with its governance token. The project announced it has raised $550 million through token sales of $WLFI.

Some ethics experts have raised concerns about potential influence peddling. They point to examples like crypto entrepreneur Justin Sun’s public purchase of $75 million worth of WLFI tokens.

The WLFI website currently offers limited details about the project’s specific products. Its “gold paper” describes plans to create a hub for accessing various DeFi applications.

President Trump is listed as “Chief Crypto Advocate” in the project’s documentation. This high-profile backing has helped attract attention and investment to the platform.

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