The Donald Trump family and business partners dive into crypto projects that are taking shape, with World Liberty Finance set to unveil stablecoin on BNB Chain and Ethereum.
The team behind the World Liberty Financial (WLFI) project have sought the opportune time to issue tokens even before Donald Trump’s election as the 47th president of the United States. According to recent on-chain data, the decentralized finance (DeFi) project harbours plans to launch its stablecoin.
Strategic Timing for Stablecoin Launch
The WLFI team is unveiling the stablecoin token USD1 following multi-month planning that began in October last year. The Trump family and business partners then were yet to finalize several issues related to the product’s safety and legality.
The timing of the USD1 unveiling by the World Liberty team coincides with Trump endorsing dollar-backed stablecoins alongside Congressional support to legalize the stablecoins. The launch on Ethereum and BNB Chain is timely for the WLFI team to enter the increasingly crowded and lucrative niche currently dominated by Tether (USDT) and USD Coin (USDC).
Stablecoins are pegged to the unit price of the underlying fiat currency with USD1 based on the US dollar. The token will be on- and -off-ramps in traditional finance and crypto markets. As such, they allow users to park on-chain funds as currency with a fixed value despite the market fluctuation. While stablecoins have extended to the local currencies, the leading tokens serve as dollar equivalents even in markets where such face restrictions.
Stablecoins have, in the past year, offered immense profits to the issuers. As the world’s largest stablecoin issuer, Tether (USDT) realized $13 billion primarily from reinvesting user deposits in the yield-bearing US Treasuries. The profitable nature makes the field attractive to competitors from within the crypto and TradFi world.
Shifting US Regulations on Stablecoins
The US is advancing towards regulatory clarity for stablecoins, whose legality is still an open question. The former President Joe Biden administration saw the Securities and Exchange Commission (SEC) under Gary Gensler’s leadership sue stablecoins issuers, including Binance and Paxos, alleging violation of securities laws. In a significant departure, the Trump administration endorses the stablecoin, whose passing via Congress would resolve the legal uncertainty.
World Liberty’s USD1 token is compatible with Ethereum and is thus open to various projects on the blockchain network alongside BNB, which was developed by the crypto exchange Binance. Former Binance chief Changpeng Zhao (CZ) hailed the news of the USD1 unveiling on the BNB in a welcome message directed to the World Liberty via X.
World Liberty Scales Crypto Projects
The Trump-backed crypto project has scaled its operations in the space, mainly concluding two rounds of governance token, WLFI, sale earning $550 million. The team shortly hinted at unveiling disruptive technology capable of redefining and extending the boundaries of digital assets.
A recent release by WLFI indicated over 85,000 participants completed the know-your-customer verification for access to the token sale. Zach Wifkoff, a co-founder of the project, showed that WLFI is on course towards supercharging decentralized finance.
The project team announced in January that Tron blockchain founder Justin Sun had increased his stake to $75 million in WLFI tokens. While the Trump family unveiled Official Trump and Melania meme coins, the team is keen on scaling WLFI amid the crypto-friendly agenda.
Meanwhile, the DeFi project bought substantial amounts of Mantle’s MNT token a week after the completion of a significant technological upgrade on the network. The WLFI bought 3.54 million MNT for an average of 84 cents, pushing the transaction to nearly $3 million USDC per Arkham Intelligence and Lookonchain data.
The Mantle Mainnet completed the backwards-incompatible upgrade on March 19 to activate the EigenDA. The EigenDA activation guarantees security and high throughput while ensuring decentralized data availability service on the Ethereum network. The network can process additional transactions per block, making the Mantle better compatible with the incoming Petra upgrade on Ethereum.
