The DeFi project of American President Donald Trump, World Liberty Financial, has launched its own stablecoin on the Ethereum and Binance’s BNB blockchain. The launch of the token, named USD1, marks the culmination of a plan that has been in the works for several months. Media previously reported that the Trump family and its business partners were planning to issue a stablecoin, but at that time they were still addressing issues related to the security and legality of such a product. With Trump returning to the White House and Republicans in Congress advocating for the passage of a bill to legalize stablecoins, it seems that the World Liberty team believes it is the right time for the president to enter the increasingly competitive and lucrative stablecoin market himself.
Stablecoins, which are generally pegged to the price of the US dollar, serve as a crucial link between crypto and traditional financial markets. They allow users to hold assets on the blockchain in currencies whose value remains fixed even when crypto markets fluctuate. The stablecoin also functions as a dollar equivalent in markets where dollars are limited. They can also offer huge profits to issuers. Tether, the world’s largest stablecoin issuer, made a profit of $13 billion last year, primarily from reinvesting client deposits in yielding US Treasury bonds. Perhaps for this reason, the field seems set to be flooded with competitors from all corners of the crypto and traditional finance world.
