Ari10 CEO: Trump's $1 move not blockchain affection, but dollar expansion

President Donald Trump's endorsement of stablecoins might be rooted more in financial engineering than in blockchain advancement, as per Mateusz Kara, the CEO of prominent European crypto payments firm Ari10.

With the introduction of USD1, a new stablecoin pegged to the dollar and backed by U.S. President Donald Trump and his family, it may seem like the latest step towards mainstream acceptance of cryptocurrencies and a logical move given his support of the industry. However, for Mateusz Kara, CEO of leading European crypto payments provider Ari10, the stablecoin represents something much more significant: a U.S.-led initiative to transform global debt markets.

"I'm not entirely convinced by Trump's sudden affection for stablecoin and blockchain," Kara stated in a press release sent to crypto.news. "The real reason for bolstering the stablecoin market is to establish a new, receptive global market for U.S. bonds."

According to Kara, the process is straightforward but impactful. To issue stablecoins such as USD1, platforms will need to acquire U.S. dollars and short-term treasuries. This creates a new, decentralized channel for the distribution of global bonds.

"It's a new mechanism for expanding the dollar," he clarified. "And it will enable the U.S. to borrow at a lower cost by increasing demand for its debt."

USD1 debuts in a crowded market

USD1 was launched on March 25 by World Liberty Financial, the decentralized finance venture affiliated with the Trump family. The token is backed 1:1 by U.S. treasuries, cash equivalents, and deposits, and will operate on Ethereum and Binance Smart Chain. The project has already garnered over $500 million in funding and 85,000 verified users, as reported by CNBC.

It enters a stablecoin market that has grown by over 46% in the past year, with competitors like Tether, Circle, PayPal, and Ripple vying for control. Treasury Secretary Scott Bessent recently commented that stablecoins will play a crucial role in ensuring "the U.S. remains the dominant reserve currency."

Implications for Europe

For European markets, Kara believes the introduction of USD1 should serve as a cautionary tale.

"Europe must reinforce its euro-based stablecoin infrastructure," he urged. "Otherwise, dollar-based stablecoins will control the digital financial system."

He also highlighted the importance of regulatory progress, such as the EU's MiCA framework, in creating a safer, more competitive environment for stablecoin innovation. Despite recent hacks and exchange scandals that have undermined investor confidence, Kara believes regulation can provide the security and transparency required to rebuild trust.

Ultimately, USD1 might be less about cryptocurrency utility and more about soft power. By incorporating dollar-backed stablecoins into the global financial system, the U.S. could create a new channel for distributing its debt, one that bypasses traditional banking and extends the reach of the dollar in a programmable, borderless form.

Whether Europe will be able to meet the challenge, Kara warns, depends on its speed of action.

"Stablecoins are no longer just about cryptocurrency," he said. "They're becoming instruments of global monetary strategy."