USD-pegged Stablecoin Launch Confirmed by WLFI, Backed by U.S. Treasury Securities

World Liberty Financial Inc. has officially announced the introduction of USD1, a stablecoin that can be exchanged 1:1 for the U.S. dollar and is backed by short-term U.S. Treasuries, cash deposits, and other equivalent assets. This revelation comes after online rumors circulated about the launch.

USD1 will make its debut on Ethereum and Binance Smart Chain, with WLFI planning to expand to other blockchains in the future, as per a statement provided to crypto.news.

WLFI is promoting USD1 as a reliable and institution-friendly alternative to algorithmic and under-collateralized stablecoins. The company has emphasized transparency, with third-party audits ensuring that the token's circulating supply matches its reserves.

This news corroborates earlier speculation that WLFI had launched its USD1 stablecoin on BNB Chain, after blockchain analytics detected interactions between its contract and a wallet associated with Wintermute. However, neither World Liberty Financial nor the Trump family had formally confirmed this until now, despite the deployment happening around three weeks ago.

BitGo as Custodian

BitGo, a top digital asset custodian, will be responsible for managing USD1's reserves. The company, which caters to institutional clients globally, will also provide trading and liquidity support through BitGo Prime.

"The launch of USD1 represents a significant step forward in digital assets that are ready for institutions," said BitGo CEO Mike Belshe, highlighting that the stablecoin combines robust liquidity with regulated, qualified custody.

Unlike stablecoins that depend on intricate yield-generating mechanisms, USD1 prioritizes transparency and security. WLFI aims to establish the stablecoin as a trusted choice for institutions looking to engage with DeFi, while ensuring full collateral backing.

"USD1 offers what algorithmic and anonymous crypto projects cannot – access to the capabilities of DeFi supported by the credibility and safeguards of the most esteemed names in traditional finance," stated WLFI co-founder Zach Witkoff.

He added that sovereign investors and institutions can utilize USD1 for secure, cross-border transactions without exposure to additional risks.