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A Donald Trump-oriented financial entity, World Liberty Financial, has now officially entered into the stablecoin market, with USD1 being USD pegged token. The market for dollar-pegged stablecoins is becoming more competitive. As reported by CryptoQuant, the market capitalization of these stablecoins has increased by over 46% in the last year. This step represents an important milestone for this institution, which has very close relations to Trump-aligned figures and conservative investors hoping to realign financial infrastructure along ideological lines.
Announced on March 25, 2025, by World Liberty Financial's executive board, USD1 is expected to rival existing stablecoins such as Tether's USDT and Circle's USDC. USD1 promises a complete backing by U.S. Treasury bills and cash reserves and aims for "transparency, American values, and trust" within what the firm perceives as a crypto market often criticized for lack of transparency and regulatory friction.
The USD1 token will operate on both the Ethereum and Solana blockchains, making it compatible with various established decentralized finance (DeFi) platforms. The process of issuing and redeeming these tokens will be managed by LibertyX, a subsidiary of World Liberty Financial, which is registered as a currency service provider with the Financial Crimes Enforcement Network (FinCEN) under the U.S. Department of Treasury.
Critics argue the launch of a Trump-associated stablecoin will inject more politics into an already politicized crypto environment, while proponents contend that USD1 will offer a patriotic-regulated alternative to stablecoins issued abroad. "We're building a financial system, putting America first," said CEO Rachel Stanton, an ex-Treasury official and a passionate advocate for blockchain innovation.
This follows concurrent discussions between U.S. lawmakers on stablecoin legislation, which can possibly change the shape of issuance and management in digital dollars. Analysts viewed this timing as strategic, with World Liberty Financial possibly eyeing a shaping or benefiting from what is to come regarding regulation.
This is another brick in the wall toward Donald Trump becoming more involved in cryptocurrency. Earlier skeptical of bitcoin and crypto in general, he has now changed course, touting pro-crypto policies and weaving them into his campaign rhetoric. USD1, though not officially tied to Trump's political campaign, is widely seen as aligned with his vision for the economy.
Currently held by only a handful of players, the stablecoin market, which boasts a circulation of more than $150 billion, will need to carve out its niche by providing innovations to attract institutional users while also targeting retail ones. To this end, World Liberty Financial has pledged monthly transparency reports, real-time audits of reserves, and smooth integration with domestic payments systems.
But that doesn't cause some experts to let down their guard. "It's not just creating a stablecoin," said Sarah Mendelson, a fintech policy analyst. "It's maintaining the trust and infrastructure needed to be able to support billions of dollars in real-time redemptions. That's a heavy lift, even for well-funded institutions."
Whether or not USD1 picks up momentum awaits discovery. One thing is, however, a done deal: entry by an institution backed by Donald Trump into the stablecoin industry brings not just drama but a heightened intensity into the otherwise "stablecoin wars," political involvement and fiscal engineering now squarely wedded together.