The Trump family’s World Liberty Financial is launching a stablecoin, its latest bid to capitalize on a crypto-market revival kindled by the president’s election.
World Liberty’s USD1 will be backed by short-term U.S. Treasurys, U.S. dollar deposits, and other cash equivalents, the company said Tuesday. The token will be issued on the Ethereum network and a blockchain created by Binance, the crypto exchange that has sought to forge closer ties to the president’s family.
Stablecoins provide the backbone to the decentralized web of digital networks that comprise the crypto markets, functioning as digital dollars used widely to store cash or pay for purchases of other tokens. They aim to maintain a 1:1 exchange ratio with government-issued currencies, and store reserves in cash or cash-like assets such as Treasurys to keep the peg in place.
World Liberty’s stablecoin project marks the Trump family’s latest push into crypto, and comes as the president’s administration has sought to make the U.S. a more-welcoming market for digital assets. Earlier this month, Trump pledged to make the U.S. the “undisputed bitcoin superpower and the crypto capital of the world.”
The Trumps launched World Liberty in October, billing the entity as a decentralized finance, or DeFi, project that would help match crypto investors eager to borrow and lend from, and trade with, one another.
Critics said World Liberty’s stablecoin launch poses a major conflict of interest for President Trump, who has said he hoped to see stablecoin legislation on his desk before Congress’s August recess.
“We haven’t had a president in recent memory ever sign legislation that could directly affect his financial interest,” said Kedric Payne, senior director of ethics at the Campaign Legal Center, an ethics watchdog group. “It is a clear violation of the ethics norm.”
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