With the approval of the new stablecoin bill, the stablecoin USD1 that was launched on March 25, 2025 came at an opportune time. It was launched by World Liberty Financial, a company directly linked to the family of the current US President, Donald Trump.
What does it do differently from other stablecoins? Who embraces it and is it reliable in this volatile crypto space? We’ll take a look…
USD1 is a new stablecoin pegged to the U.S. dollar, introduced by World Liberty Financial, which is associated with the Trump family. With integration with major blockchains like Ethereum and Binance Smart Chain, the stablecoin ensures each token equals one U.S. dollar, supported by assets like U.S. Treasury bills and managed by BitGo.
USD1 focuses on strict reserve management and governance, facilitating its quick rise to a $2 billion market cap, making it the fastest-growing stablecoin ever.
The most influential figure is former U.S. President Donald Trump, who is listed as a promoter in SEC filings. His son Donald Trump Jr. has endorsed USD1, saying stablecoins are “just as safe as bank accounts but without the nonsense.”
Other key people include real estate businessmen Zachary Witkoff and Steve Witkoff. Chase Herold, who was involved in a failed DeFi project called Doe, is also part of the team.
Learn more about the WLFI – the company behind USD1 in our article here.
USD1 raised $550 million from over 85,000 participants in two token sale rounds, as reported by CNBC. U.S. investors had limited participation due to securities laws.
Reuters reports that SEC filings show the Trump family controls 60% of the company and receives 75% of token sale revenue. USD1 has not announced a formal license yet but aims to comply with the expected U.S. stablecoin legal framework.
This review of USD1 (USD1) was created for informational purposes. This article is not intended for promotion.
When users deposit U.S. dollars with the custodian BitGo, they receive an equivalent amount of USD1 that is minted. These funds are held in segregated reserves, which consist of highly liquid assets like U.S. Treasury bills, with an average daily trading volume of approximately $40 billion for 3-month T-bills.
The redemption process works the other way around, in that holders can convert their USD1 tokens back to U.S. dollars at a 1:1 ratio. During this process, the redeemed USD1 tokens are destroyed/burned, and the corresponding dollars are released from the reserve.
Unique to USD1 is its zero-fee policy for minting and redeeming tokens.
To follow the stable price, USD1 uses an arbitrage mechanism to maintain its peg to the dollar. If USD1’s market price deviates from $1, arbitrageurs can profit by either minting new tokens or redeeming existing ones, bringing the price back to parity.
USD1 claims it will maintain a 100% reserve of high-quality liquid assets like Treasury bills to back the stablecoin supply. These reserves are reported to be frequently audited and verified through Chainlink’s Proof of Reserves. If we take a look at their reserves we see the following information…
World Liberty Financial profits from USD1 in a manner similar to other stablecoins like Tether’s USDT. When users buy USD1, the company invests that money in US Treasury bonds, which generate interest. The more people convert, the more funds they hold, and the more interest they collect. This ‘free interest’ model makes the stablecoin business highly attractive.
While the exact nature of the partnership between Trump’s World Liberty Financial and Binance remains unclear, it has been revealed that USD1 will be tradable on both the Ethereum blockchain and Binance’s BNB Chain.
It could be that Binance is embracing USD1 as its preferred stablecoin for trading pairs, similar to what they did previously with BUSD, which was halted due to regulatory concerns. This could also mean that every time a user trades Bitcoin, Ethereum, or any other cryptocurrency on Binance, their funds would move through USD1
Binance CEO CZ welcomed USD1 to BNB Chain but noted the issue of copycat fake tokens.
For custody, USD1 is partnering with BitGo, which has an imperfect security record. BitGo provides the necessary infrastructure for the launch and management of USD1, ensuring that the stablecoin is backed by short-term U.S. Treasuries and other cash equivalents. Other than that, the market maker for USD1 will be Wintermute, which will provide liquidity for the stablecoin.
Blockchain Deployments will assist with smart contract development on both the Ethereum and BNB Chain. Potential collaborators include Chainlink, Aave, Uniswap, and Sui, all of which play significant roles in the decentralized finance ecosystem and are expected to contribute to the growth and functionality of USD1.
USD1 will focus primarily on DeFi integrations, as the core issuing company, WLFI, hopes USD1 will be widely used for institutional cross-border payments, treasury management, and retail payments on a regular basis.
USD1 has various use cases, including:
However, the new stablecoin on the block has triggered a wave of copycat scam tokens that have already caused financial losses for some people. Always confirm the correct USD1 contract address to avoid scams:
0x8d0d000ee44948fc98c9b98a4fa4921476f08b0d.
Alternatively, buy the token on a trusted exchange; check out these trusted exchanges here.
USD1, a fiat-backed stablecoin linked to the U.S. dollar and developed by World Liberty Financial, associated with the Trump family, presents several considerations and risks that users must be aware of.
The stablecoin is subject to regulatory and compliance risks, as it operates under the scrutiny of financial authorities concerned about its effects on monetary policy and related issues.
Any financial instability or mismanagement by the issuer or custodian, such as BitGo, could affect the token’s value and redemption capabilities.
Critics also argue that the President’s ban on the Federal Reserve issuing an official digital dollar, followed by his family’s company promoting and issuing USD1, raises serious concerns about transparency and the independence of U.S. monetary policy, if there weren’t already enough.
Transparency around the reserves backing USD1 is another critical issue. While the stablecoin commits to regular audits, the lack of detailed, frequent reserve attestations may leave users with uncertainties about the real backing of their tokens.
The alignment between Trump’s USD1 stablecoin and Binance, a company with a troubled history in the U.S. and ties to China, has raised eyebrows. Some wonder if this partnership is a clever ploy to leverage the crypto community’s desire for freedom and privacy while potentially steering more than just the U.S. dollar.
The success or failure of USD1 will heavily depend on how well World Liberty Financial can address the concerns surrounding its ties to the Trump family and prove its commitment to transparency and neutrality. While some may see USD1 as a promising addition to the stablecoin space, others view it as a potential threat to the independence of U.S. monetary policy and the stability of the U.S. economy.
Trump’s USD1 venture raises ethical questions about potential conflicts of interest. He is the first U.S. president to own and promote a cryptocurrency project while in office. The previous administration was generally hostile to crypto, but Trump has come full circle from his earlier Bitcoin skepticism to now launching USD1.
USD1’s launch has coincided with a favorable U.S. regulatory environment, which seems poised to foster a supportive framework for stablecoins. While the previous administration was generally hostile to crypto, Trump has come full circle from his earlier Bitcoin skepticism to now launching USD1.
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