World Liberty Financial Launches USD1 Stablecoin on Ethereum and BNB Chain

World Liberty Financial (WLFI), a decentralized finance platform backed by former U.S. President Donald Trump and his family, has launched a dollar-pegged stablecoin on both Ethereum and BNB Chain networks. The stablecoin, named World Liberty Financial USD (USD1), was deployed in early March 2025 with an initial supply of approximately 3.5 million tokens on each blockchain. This move marks a significant development for WLFI, which has been in the works since its launch in September 2024.

Blockchain analysts first detected activity involving the USD1 token on March 24, 2025. Transactions related to the token have been observed over the past few weeks, with notable interactions from addresses linked to major players in the crypto industry. According to data from blockchain monitoring websites, addresses associated with Wintermute, a large digital asset trading firm, and BitGo, a prominent crypto custodian, have engaged with the token.

In response to the growing public interest, WLFI issued a statement on X, clarifying that the USD1 token is “not currently tradeable” and warning users about potential scams. The company advised users to follow official announcements for accurate information. This cautionary message comes as former Binance CEO Changpeng Zhao highlighted the token’s deployment on BNB Chain, drawing significant attention and triggering the creation of copycat tokens.

Zhao’s post, which included a screenshot of the USD1 BscScan profile, was shared with his extensive follower base, leading to a surge in interest and imitation tokens attempting to capitalize on the attention. This incident underscores the importance of official communication and user awareness in the rapidly evolving crypto landscape.

The launch of USD1 coincides with the advancement of the GENIUS Act for stablecoin regulation in the Senate. The GENIUS Act, which aims to create a regulatory framework for stablecoins in the United States, has moved out of the Banking Committee and is expected to reach the President’s desk by June. This legislation is part of the Trump administration’s broader focus on crypto regulation, emphasizing the role of stablecoins in preserving the U.S. dollar’s global position as a reserve currency.

Stablecoins have emerged as a critical segment of the crypto industry, with their prices pegged to external assets, primarily the U.S. dollar. They are widely used for crypto trading, everyday payments, remittances, and savings. The stablecoin market has experienced significant growth, with the number of active stablecoin wallets increasing by more than 50% from February 2024 to February 2025. The total market capitalization of stablecoins surpassed $200 billion in January 2025, with Tether (USDT) and USD Coin (USDC) remaining the most popular stablecoins.

WLFI’s stablecoin launch is part of its broader vision to create a blockchain-based marketplace for borrowing and lending cryptocurrencies, creating liquidity pools, and transacting with stablecoins. The platform has completed two public token sales since its launch, generating a combined $550 million for the company. This strong investor interest reflects the potential of the Trump-backed project in the decentralized finance space.

However, the ownership structure of WLFI, with President Trump and some members of his family controlling 60% of the company’s equity interests, has raised questions about potential conflicts of interest. As the stablecoin market continues to evolve, regulatory clarity and transparency will be crucial for the sustainable growth of projects like WLFI.