World Liberty Financial's token linked to Trump family attracts corporate interest as treasury asset, co-founder predicts stablecoin could surpass Tether.

World Liberty Financial's token linked to Trump family attracts corporate interest as treasury asset, co-founder predicts stablecoin could surpass Tether.

World Liberty Financial's (WLF) stablecoin, USD1, has garnered significant corporate interest as a potential treasury asset, according to recent developments. The token, which is pegged 1:1 to the U.S. dollar, has seen its market capitalization surge to over $2.2 billion, making it the fifth-largest stablecoin [1]. This growth coincides with increasing demand for stablecoins in the U.S. Treasury market, driven by their ability to absorb a significant supply of government debt.

The stablecoin market is expected to grow rapidly, with estimates suggesting it could reach $2 trillion by 2028 if the GENIUS Act is signed into law [2]. This legislative framework aims to create a regulatory structure for stablecoins, which are pegged to highly liquid assets like the U.S. dollar. The act recently passed the U.S. Senate with bipartisan support, further boosting the prospects for stablecoin adoption.

WLF's USD1 stablecoin has benefited from strategic partnerships and major deals. For instance, the President of the UAE used USD1 for a $2 billion investment into Binance, and the token was minted on the Tron blockchain, which is run by crypto billionaire Justin Sun [1]. Sun is also a significant investor in WLF and holds a substantial amount of the Trump-themed TRUMP meme coin.

The Trump family's involvement in the crypto sector, including their reduced stake in WLF, has sparked controversy and raised questions about potential conflicts of interest [1]. However, the growing corporate interest in USD1 and other stablecoins is a testament to their potential as a treasury asset and a means of driving demand for U.S. Treasuries.

As the stablecoin market continues to expand, investors and financial professionals should keep a close eye on regulatory developments and the potential impact of stablecoins on the Treasury market. The GENIUS Act's passage through the Senate has already bolstered hopes for wider adoption, but its success in the House remains uncertain.

References:

[1] https://coinpedia.org/news/trump-family-slashes-crypto-stake-in-world-liberty-financial-amid-conflict-probe/
[2] https://www.investing.com/news/stock-market-news/us-treasuries-face-stablecoindriven-demand-surge-as-supply-looms-4111224