Trump Family Launches Stablecoin After Creating Meme Coin

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World Liberty Financial, a cryptocurrency platform established by the family of President Donald Trump, is launching its own stablecoin, USD1. A stablecoin is a type of cryptocurrency designed to maintain a stable value by pegging it to a fiat currency like the US dollar.

According to industry sources on the 29th, World Liberty Financial announced on the 25th that it would soon issue the US dollar-based stablecoin USD1. USD1 is pegged to the value of 1 dollar and is fully backed by short-term US Treasury bonds, dollar deposits, and other cash-equivalent assets. It will be issued on Ethereum and Binance Chain, with plans to expand to other blockchains in the future. The reserves will be held by the custody firm BitGo and will undergo regular external audits.

Recently, the Trump administration has shown support for stablecoins to solidify the global dominance of the dollar. In a speech at a digital asset conference on the 20th, President Trump emphasized, "Dollar-based stablecoins will contribute to further strengthening the dominance of the dollar." US Treasury Secretary Scott Besant also expressed the intention to use stablecoins to enhance the global dominance of the dollar.

There is also analysis that the Trump family is directly getting involved in the booming stablecoin market. According to data analytics firm CryptoQuant, the dollar-based stablecoin market has grown by 46% over the past year. Notably, Tether, the world's largest stablecoin issuer, reportedly made a net profit of over $13 billion last year. US asset management firm Bernstein predicts that the stablecoin market will reach $500 billion by next year.

Meanwhile, the 'Genius Act,' which could shake up the stablecoin market, is aiming for passage in the US Congress. The bill recently passed the US Senate Banking Committee and is awaiting a full Senate vote. If passed, stablecoins issued by US companies are expected to gain more market dominance. Previously, David Sachs, the White House cryptocurrency czar, stated that processing the stablecoin bill is a top priority.

However, concerns about conflicts of interest are being raised as the Trump family directly engages in the cryptocurrency business. Cryptocurrency-focused media outlet CoinDesk reported, "World Liberty Financial announced the launch of a stablecoin shortly after raising $500 million through its own token sale," adding, "Experts and legal scholars are increasingly expressing concerns about potential conflicts of interest within the Trump administration."