trump backed stablecoin initiative

In a bold convergence of politics and cryptocurrency, former President Donald Trump has officially embraced the digital asset sphere as “Chief Crypto Advocate” for WLFI’s new USD1 stablecoin. The venture, announced on March 25, 2025, is positioning itself as a major player in the rapidly expanding stablecoin market, which surpassed $200 billion in total capitalization earlier this year.

USD1 will be pegged 1:1 to the U.S. dollar and initially available on Ethereum and BNB Chain networks. Think of it as digital cash with training wheels – all the mobility of cryptocurrency but without the roller coaster price movements that make Bitcoin feel like a theme park ride. The stablecoin is backed by a reserve of U.S. Treasuries, dollar deposits, and cash equivalents, with BitGo providing custody services. The partnership with BitGo ensures regular third-party audits to verify full collateral backing.

Digital cash with guardrails – cryptocurrency’s mobility without Bitcoin’s wild price swings.

The Trump family’s involvement extends beyond the former president, with sons Barron, Eric, and Donald Jr. serving as “Web3 Ambassadors.” Co-founder Zach Witkoff, son of real estate magnate Steve Witkoff, has helped the company raise an impressive $550 million through two token sales.

What’s particularly eyebrow-raising is the revenue structure – Trump family interests maintain 60% equity, with DT Marks DEFI LLC set to receive 75% of net protocol revenue. This arrangement has ethics experts waving red flags about potential conflicts of interest, especially as the GENIUS Act for stablecoin regulation heads toward Trump’s desk by June.

WLFI’s ambitions stretch beyond USD1, with plans for a DeFi ecosystem featuring lending protocols and real-world asset integration. Like other fiat-collateralized stablecoins, USD1 aims to provide the stability needed for reliable cross-border transactions while maintaining transparency about its reserves. Partnerships with Chainlink and Aave suggest they’re serious about bridging traditional finance with the crypto frontier.

Currently in testing phase with about 3.5 million tokens on each network, USD1 isn’t yet tradable. Market watchers should beware of scam tokens that have already appeared, prompting WLFI to issue warnings.

When it fully launches, USD1 will compete directly with established players like Tether’s USDT and Circle’s USDC in an increasingly crowded stablecoin landscape.

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