World Liberty Financial, endorsed by President Trump, is set to introduce a new stablecoin on Tuesday, aiming to connect traditional finance with digital assets.
As per a press release, the upcoming stablecoin called USD1 will be pegged to the US dollar and backed by short-term government treasuries, dollar deposits, and cash equivalents.
Co-founder of World Liberty Financial, Zach Witkoff, stated,
“USD1 offers what algorithmic and anonymous crypto projects lack – access to the potential of DeFi supported by the credibility and security of renowned names in traditional finance.
We are providing a digital dollar stablecoin that sovereign investors and major institutions can seamlessly incorporate into their strategies for secure cross-border transactions.”
Initially accessible on Ethereum (ETH) and Binance Smart Chain (BSC) networks, USD1 is geared towards institutional and sovereign investors.
The platform has partnered with BitGo, a digital asset custody company, and has raised $550 million in token sales. Mike Belshe, CEO of BitGo, described the collaboration as a significant step forward in the legitimacy of digital assets.
To attract institutional adoption, WLFI highlights that USD1 emphasizes stability through a “conservative approach” that avoids complex yield-generating mechanisms, unlike other stablecoins that introduce additional risk factors.
USD1 will undergo regular third-party audits to ensure transparency. The company envisions future expansion, including the development of lending and borrowing markets through smart contract technology.
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Featured Image: Shutterstock/Tithi Luadthong/Natalia Siiatovskaia