coindesk.com
World Liberty Financial (WLFI), the decentralized finance protocol backed by U.S. President Donald Trump and his family, confirmed on Tuesday its plans to launch a U.S. dollar-backed stablecoin.
USD1 is anchored to $1 and will be fully backed by short-term U.S. governemnt securities, U.S. dollar deposits, and other cash equivalents. The reserves will be custodied at BitGo, while BitGo Prime, the firm's brokerage service will provide liquidity for the token.
The stablecoin will be first available on Ethereum and BNB Chain, with plans to expand to other networks, the protocol said.
The announcement came after crypto observers brought attention to test transactions with a token named World Liberty Financial USD (USD1) on Ethereum and BNB Chain, with BitGo and market maker Wintermute being involved in transfers.
"USD1 provides what algorithmic and anonymous crypto projects cannot—access to the power of DeFi underpinned by the credibility and safeguards of the most respected names in traditional finance,” said Zach Witkoff, WLFI co-founder. “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.”
WLFI, a project spearheaded by Zachary Folkman and Chase Herro, made a splash last year as one of the first crypto projects enjoying the backing of Trump. The protocol aims to provide a blockchain-based marketplace where users can borrow and lend cryptocurrencies, create liquidity pools and transact with stablecoins.