On March 25, 2025, President Donald Trump’s crypto venture, World Liberty Financial (WLFI), officially launched USD1, a dollar-pegged stablecoin fully backed by U.S. Treasuries, dollar deposits, and cash equivalents. Announced at 5:51 AM PDT via a Business Wire release and amplified by posts on X, this groundbreaking move positions USD1 as a bridge between traditional finance and the decentralized world of cryptocurrency. Deployed on Ethereum and Binance Smart Chain (BNB Chain), with a starting supply of 3.5 million tokens, USD1 aims to redefine stablecoin credibility amid a market already buzzing from Trump’s pro-crypto policies. As Bitcoin hovers near $95,000, this launch could mark a pivotal moment for digital assets and U.S. financial dominance.
World Liberty Financial, co-founded by Zach Witkoff and inspired by Trump’s vision, confirmed USD1’s debut today, fulfilling months of speculation. The stablecoin, redeemable 1:1 for U.S. dollars, is “100% backed by a reserve portfolio audited regularly by a third-party accounting firm,” per WLFI’s statement (Medium, March 25). Unlike algorithmic or under-collateralized peers, USD1 leans on short-term U.S. government Treasuries, dollar deposits, and cash equivalents, offering what Witkoff calls “the credibility and safeguards of traditional finance” paired with DeFi’s power (BitcoinEthereumNews.com).
The launch follows test transactions on BNB Chain reported by Crypto Briefing on March 24, with on-chain data from Etherscan and BscScan showing activity linked to market maker Wintermute and custodian BitGo (CoinDesk). Trump, who controls 60% of WLFI with family members since its September 2024 founding, hailed USD1 as a tool to “expand the dominance of the U.S. dollar,” echoing his March 20 speech at the Blockworks Digital Asset Summit (FXStreet). Posts on X from @Mrbitcoincom and @rovercrc labeled it “super bullish,” reflecting crypto community hype.
USD1 enters a crowded yet booming stablecoin arena, where Tether (USDT) holds a $142 billion market cap and Circle’s USDC—approved in Japan on March 24—stands at $56 billion (Crypto Quant). Yet, Trump’s backing and WLFI’s reserve model set USD1 apart. Treasury Secretary Scott Bessent, speaking at the White House Crypto Summit on March 7, underscored stablecoins’ role in preserving dollar hegemony (NBC Chicago), a narrative USD1 amplifies with its Treasury-backed peg. BitGo CEO Mike Belshe told CryptoBriefing that USD1 could make digital assets “more appealing and usable” for traditional institutions, with BitGo Prime providing liquidity support.
The timing aligns with Trump’s tariff retreat on March 24, which calmed markets and boosted Bitcoin to $95,000 (Bloomberg). BitGo CEO Mike Belshe told CryptoBriefing that USD1 could “mainstream digital assets for institutions,” contrasting with USDT’s regulatory woes—like Binance’s EU delisting in December 2024 (Coinpedia). X posts from @scottmelker hailed it as “a stablecoin with teeth,” citing its U.S.-centric reserve as a trust booster.
USD1’s launch could reshape the stablecoin landscape. Its Treasury backing aligns with Circle’s transparency push, potentially pressuring Tether to clarify its reserves. For DeFi, USD1 offers a reliable peg for lending, borrowing, and trading—key amid a 46% stablecoin market cap surge over the past year (Cryptonomist.ch). Institutional adoption, teased by WLFI’s focus on sovereign funds, could accelerate if USD1 integrates with Trump’s broader economic agenda, like the tariff-softened trade policies boosting dollar stability.
Globally, it challenges Asia’s stablecoin wave—Circle’s Japan entry and Hong Kong’s ETF boom—positioning the U.S. as a crypto leader. However, critics on X, like @RoundtableSpace, warn of centralization risks: “A Trump coin backed by Treasuries isn’t decentralized—it’s a government leash.” Regulatory hurdles loom too; while Trump’s influence may ease U.S. scrutiny, international acceptance hinges on compliance with frameworks like the EU’s MiCA.
Trump’s USD1 stablecoin, launched on March 25, 2025, via World Liberty Financial, is a bold fusion of crypto innovation and U.S. financial might. Backed by Treasuries and dollars, it promises stability in a volatile market, challenging USDT and USDC while riding Trump’s pro-crypto wave. As Ethereum and BNB Chain light up with its debut, USD1 could redefine digital finance—or spark debate over centralization’s cost. With Bitcoin at $95,000 and the world watching, Trump’s “digital dollar” is here—whether it’s a revolution or a power play depends on what comes next.