Organisers of a cryptocurrency project supported by US President Donald Trump announced plans on Tuesday to launch a new dollar-pegged stablecoin backed by government debt.
World Liberty Financial Inc (WLF) said the stablecoin, called USD1, would be redeemable one-to-one for the US dollar backed by short-term government treasuries, dollar deposits and other cash equivalents.
The digital token, intended to maintain a value of $1, will be “fully backed by a reserve portfolio audited regularly by a third-party accounting firm”, WLFI said, without providing details.
USD1 will be minted on the Ethereum and Binance Smart Chain blockchains, WLFI said. It did not provide details on the stablecoin's launch.
“We’re offering a digital dollar stablecoin that sovereign investors and major institutions can confidently integrate into their strategies for seamless, secure cross-border transactions,” said Zach Witkoff, WLF co-founder and son of Steve Witkoff, US special envoy to the Middle East.
Since its launch in October, shortly before the 2024 US election, World Liberty Financial said it has raised $550 million through two sets of token sales. The crypto venture said it sold $300 million worth of WLF tokens in the first set and $250 million in the second.
Mr Trump was named the company's “chief crypto advocate”, while his three sons – Eric, Donald Jr and Barron – were named ambassadors.
The company in October said DT Marks DEFI LLC, a Delaware-based company connected to Mr Trump, could receive 75 per cent of net protocol “revenue to WLF from any source, including without limitation platform use fees, token sale proceeds, advertising or other sources of revenue, after deduction of agreed expenses and reserves for WLF’s continued operations”.
Mr Trump has made significant overtures towards the crypto industry since becoming President, initially fuelling a crypto rally, bringing the price of Bitcoin beyond $100,000 before fears of a rising trade war brought it back down to about $85,000.
The White House hosted its first crypto summit this month, shortly after Mr Trump signed an executive order establishing a strategic Bitcoin reserve.
He has also appointed people with more tolerant views towards cryptocurrency as regulators, including to the Securities and Exchange Commission.
Paul Atkins, Mr Trump's pick to lead the commission and cryptocurrency advocate, was scheduled to give evidence during his confirmation hearing on Thursday. Mr Atkins has served on the crypto advisory group Digital Chambers Token Alliance since 2017.
