World Liberty Financial Inc., a decentralized finance platform backed by United States President Donald Trump, announced on Tuesday plans to launch a stablecoin named USD1. The platform said USD1 will be "100% backed by short-term US government treasuries, US dollar deposits, and other cash equivalents" and will be redeemable 1:1 for the US dollar.
USD1 tokens will initially be minted on the Ethereum and Binance Smart Chain blockchains, with plans to expand to other protocols. The company stressed the stablecoin is intended to keep its $1 value, "fully backed by a reserve portfolio audited regularly by a third-party accounting firm." World Liberty Financial added that USD1 will "prioritize stability through its conservative approach," reducing risks. "By avoiding complex yield-generating mechanisms, USD1 offers the clarity and security required for broader institutional adoption," it claimed.
