World Liberty Financial Launches USD1 Stablecoin Backed by US Treasuries

World Liberty Financial, a decentralized finance (DeFi) project inspired by President Donald J. Trump, has announced the launch of USD1, a stablecoin designed to bridge the flexibility of DeFi with the trusted frameworks of traditional finance. The stablecoin will be redeemable one-to-one for US dollars and will be fully backed by short-term US government treasuries, dollar deposits, and cash equivalents. This initiative aims to provide institutional investors and sovereign entities with a reliable digital asset that combines the benefits of DeFi with the security and credibility of traditional financial systems.

Zach Witkoff, co-founder of World Liberty Financial, emphasized that USD1 offers 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. The stablecoin will initially launch on Ethereum and Binance Smart Chain, with plans for expansion to other protocols in the future. The exact launch date has not been disclosed.

To ensure the security and transparency of USD1, World Liberty Financial has partnered with BitGo, a leading digital asset custody provider. BitGo will offer custodial and prime brokerage services for USD1, with the reserves being regularly audited by a third-party accounting firm. Mike Belshe, CEO of BitGo, highlighted that this partnership represents a significant step forward in making digital assets more appealing and usable for large, traditional financial institutions. He noted that the combination of deep liquidity and the assurance of securely held and managed reserves within regulated, qualified custody meets the demands of their clients for both security and efficiency.

The announcement of USD1 follows a series of test transactions conducted by World Liberty Financial on the BNB Chain, as well as cross-chain tests performed by Wintermute between Ethereum and the BNB Chain. These tests demonstrate the project's commitment to ensuring the stability and reliability of USD1 before its official launch. The stablecoin is part of a broader initiative by World Liberty Financial to develop a lending and borrowing market, further expanding the utility of USD1 within the DeFi ecosystem.

In summary, the launch of USD1 by World Liberty Financial represents a strategic move to integrate the innovative aspects of DeFi with the stability and trust of traditional finance. By backing the stablecoin with US government treasuries and partnering with a reputable custody provider, World Liberty Financial aims to attract institutional investors and sovereign entities seeking a reliable digital asset. The upcoming launch of USD1 on Ethereum and Binance Smart Chain, along with plans for future expansion, positions it as a significant player in the stablecoin market.