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World Liberty Financial's USD1 Stablecoin Aims to Globalize Dollar with Blockchain Transparency
Generated by AI AgentCoin World
Wednesday, Oct 1, 2025 4:16 am ET2min read
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World Liberty Financial (WLFI), a decentralized finance (DeFi) initiative backed by former U.S. President Donald Trump and his family, has announced plans to tokenize real-world assets, including commodities such as oil, gas, cotton, and timber, and pair them with its
stablecoin. During the Token2049 conference in Singapore, CEO Zack Witkoff stated the project is "actively working" on tokenizing these assets, emphasizing the potential for blockchain-based trading of traditionally opaque markets. USD1, a dollar-pegged stablecoin launched in March 2025, is designed to provide a "trustworthy and transparent pairing option," with reserves backed by short-term U.S. Treasuries, dollar deposits, and cash equivalents[1]. The stablecoin has grown to a $2.7 billion market capitalization, ranking it among the top five stablecoins globally[2].USD1's technical design positions it as a hybrid of traditional finance and DeFi. Unlike algorithmic stablecoins, it is fully collateralized by U.S. government-issued assets and undergoes regular audits by third-party firms[3]. BitGo, a custodial partner, holds its reserves, ensuring institutional-grade security[4]. The stablecoin is already operational on
and Binance Smart Chain (BSC), with plans to expand to and other blockchains. Its adoption has been accelerated by strategic partnerships, including a $2 billion investment deal with Abu Dhabi-backed MGX to fund Binance transactions[5]. By Q4 2025, USD1 is expected to launch on , marking the first Move-based blockchain to support the stablecoin[1].The project's broader ecosystem includes a governance token (WLFI), a mobile app, and a debit card slated for 2026[1].
holders, however, are granted only voting rights, with no financial returns or transferability[6]. The token generation event (TGE) for WLFI, held in September 2025, raised $550 million across two rounds, with investors including DWF Labs and Justin Sun[2]. Institutional backing has further solidified USD1's credibility, with 5 Sigma allocating $1.5 billion to a WLFI treasury and MGX leveraging the stablecoin for sovereign-backed transactions[2].Political and regulatory considerations remain central to WLFI's narrative. While the project emphasizes its non-political status, its ties to Trump and his family have drawn scrutiny[1]. The team has clarified that their mission is "patriotic" but global, aiming to "dollarize the world" through a platform accessible to international users[1]. Regulatory compliance is a key focus, with USD1 requiring Know Your Customer (KYC) checks for all users and accredited investor status for U.S. participants[6]. The project has also navigated geopolitical sensitivities by removing references to "China Taiwan," "China Hong Kong," and "China Macau" from its messaging[1].
The expansion of USD1 onto Aptos underscores the project's strategy to compete with Ethereum and Tron in the stablecoin market[8]. Aptos CEO Avery Ching highlighted the blockchain's low transaction fees (under $0.01) and sub-second settlement times as advantages for institutional and retail users[8]. The collaboration is expected to integrate USD1 into DeFi protocols like Echelon and Hyperion, with liquidity pools and incentives launching in October 2025[8]. This move aligns with WLFI's goal of bridging traditional finance and DeFi, offering a "digital dollar" that supports cross-border transactions and institutional-grade security[4].
World Liberty Financial's growth has not been without challenges. The project faced a governance dispute with
over a proposed 7% WLFI token allocation, which WLFI denied. Such controversies highlight the complexities of decentralized governance and the risks of political entanglements in DeFi. Despite these issues, USD1's market performance and institutional partnerships suggest it is well-positioned to capitalize on the growing demand for stablecoins. With a focus on transparency, scalability, and global accessibility, WLFI aims to reinforce the U.S. dollar's dominance in the digital economy while navigating the evolving regulatory landscape[5].
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