World Liberty Financial-Labeled Tokens Spark Speculation of Trump-Backed Project’s Stablecoin Launch
World Liberty Financial (WLFI), a decentralized finance (DeFi) platform notably backed by former U.S. President Donald Trump and his family, is reportedly testing its anticipated dollar stablecoin, World Liberty Financial USD (USD1). Speculation arose this Monday following significant on-chain activity linked to USD1, which observers tracked using blockchain monitoring tools such as Etherscan and BscScan.
Analysis indicates that USD1 was deployed on the Ethereum and BNB Chain networks earlier this month, with various transactions involving the token noted over recent weeks. Some transfers were traced to addresses associated with Wintermute, a prominent digital asset trading firm, and crypto custodian BitGo. Currently, the token’s supply hovers around 3.5 million on both Ethereum and BNB Chain, as documented by Arkham Intelligence.
Changpeng Zhao, known as CZ, the founder of crypto exchange Binance, has stirred considerable attention towards the USD1 token by expressing his enthusiasm for the project on BNB Chain. He shared a welcome message to USD1 along with a screenshot of its BscScan profile with his substantial following of 10 million. Following this, Zhao noted in a subsequent post that his message led to a wave of imitation by other projects aiming to seize the spotlight.
In a response to the heightened interest, WLFI released a statement via X clarifying that USD1 is currently unavailable for trading and recommended that crypto users remain on alert for scams.
Ongoing Developments in Stablecoin
WLFI, spearheaded by founders Zachary Folkman and Chase Herro, gained notoriety last year as one of the first projects in the cryptocurrency sphere to receive backing from Trump. The protocol is designed to facilitate a blockchain-based marketplace allowing users to borrow and lend cryptocurrencies, establish liquidity pools, and transact using stablecoins.
While it has been recognized that the platform is in the process of developing its own stablecoin, there has been no formal announcement regarding the timeline for public release. Efforts to engage the WLFI team for more detailed insights have not yielded a response.
The stablecoin sector has emerged as one of the most rapidly expanding segments within the cryptocurrency landscape, deemed a pivotal application for blockchain technology. These assets, typically pegged to external entities like the U.S. dollar, play a crucial role in crypto trading and transactional activities on blockchain networks. Furthermore, stablecoins are progressively utilized for everyday financial transactions, remittances, and savings, garnering interest from numerous venture capital investors.
Interest in stablecoins surged in recent months, particularly as regulatory discussions surged to the forefront of the crypto conversation during the Trump administration. Treasury Secretary Scott Bessent emphasized the importance of stablecoins in maintaining the global dominance of the U.S. dollar as the primary reserve currency.
