World Liberty Financial (WLFI), the decentralized finance project aligned with US President Donald Trump, has now unveiled details of its plan to release USD1, a US dollar-pegged stablecoin.
According to a March 25 announcement, USD1 will launch first on Ethereum and Binance Smart Chain, with further blockchain integrations planned.
The digital asset is designed to maintain a fixed $1 value and will be supported by a reserve of US Treasury bills, fiat currency deposits, and other short-term cash equivalents.
WLFI said the stablecoin’s backing will be independently verified through regular audits conducted by a third-party accounting firm.
Meanwhile, WLFI confirmed that BitGo, a regulated and independent custodian, will hold and manage USD1’s reserves. This setup would ensure institutional clients receive secure, insured, and regulated access to the stablecoin.
This development comes on the heels of a warning issued by WLFI about counterfeit versions of the USD1 token circulating online. At the time, the protocol emphasized that the stablecoin had not yet launched on trading platforms.
However, it was unclear if the stablecoin has become publicly available following this latest announcement.
Challenging USDT and USDC dominance
Stablecoins allow users to shield funds from volatility, transfer value across borders, and access dollar-like assets in regions with currency restrictions.
According to DeFiLlama data, the stablecoin sector’s combined market cap exceeds $233 billion as of press time, and market observers expect industryctor to continue thriving.
So, USD1 enters a competitive market dominated by established players like Tether’s USDT and Circle’s USDC.
However, WLFI co-founder Zach Witkoff believes USD1 offers a distinct advantage over these rivals. He highlights its hybrid foundation, which combines decentralized finance with the oversight and credibility of traditional financial institutions.
According to him:
“USD1 provides what algorithmic and anonymous crypto projects cannot…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.”
The post World Liberty Financial releases USD1 stablecoin plans to ease pressure from scam clones appeared first on CryptoSlate.
