What Is World Liberty Financial USD? What’s the Outlook for USD1?

Against the backdrop of increasingly fierce competition in the stablecoin market, the cryptocurrency company World Liberty Financial (WLFI), supported by the Trump family, officially launched the USD1 stablecoin in March 2025, focusing on institutional-grade security and cross-border financial scenarios, attracting significant market attention.

Project Background: The Trump family’s deep involvement in cryptocurrency layout.

World Liberty Financial was established in 2024, co-founded by Trump Middle East envoy Steve Witkoff and his son Zach Witkoff in collaboration with the Trump family. Its business model is regarded in the industry as a “brand licensing type OEM”—Trump serves as the “Chief Cryptocurrency Advocate,” while his sons Donald Jr., Eric, and Barron serve as Web3 Ambassadors and DeFi advisors, while technical development is handled by a professional team.

According to the agreement, the Trump family, through the holding company DT Marks DEFI LLC, receives 75% of WLF’s net income and controls 22.5 billion governance tokens WLFI (accounting for 22.5% of the total supply). The project has raised $550 million through two rounds of token sales, becoming one of the most well-capitalized compliant stablecoin projects.

Product Design: Institutional-Level Security and Full Reserve Guarantee

USD1 adopts a design logic that is closely tied to traditional finance:

1. 100% reserve asset backed: pegged to 1:1 USD value, underlying assets include short-term U.S. Treasury bonds, USD deposits, and cash equivalents, eliminating the decoupling risk of algorithmic stablecoins;
2. Third-party auditing and custody: The world’s largest custodian, BitGo, is responsible for asset custody, with reserves regularly audited by an accounting firm and insured.
3. Multi-chain deployment: first launched at Ethereum and BNB Chain will expand to more public chains in the future.

This “conservative transparency” strategy directly addresses institutional clients’ core needs for security and compliance, and BitGo CEO Mike Belshe described it as a “major breakthrough in the institutional digital asset space.”

Application scenarios: cross-border transactions and sovereign-level cooperation

USD1 positions itself as a “seamless cross-border financial tool” and has secured key application cases:

• UAE Sovereign Fund Cooperation: In May 2025, the Abu Dhabi government fund MGX completed a $2 billion investment in Binance using USD1, highlighting its credibility in sovereign-level trading.
• Alternative to traditional banking channels: Providing regulated liquidity services through BitGo Prime, reducing compliance costs for institutional participation in DeFi. Such cases validate the positioning of WLF co-founder Zach Witkoff: “Providing integrable strategic tools for sovereign investors and institutions.”

Industry Trends: Stablecoins Become the “New Weapon” of Dollar Hegemony

The launch of USD1 aligns with the financial strategy of the Trump administration:

• Consolidating the Dollar’s Position: Treasury Secretary Scott Bessent clearly stated that “stablecoins will be used to maintain the dollar’s status as the global reserve currency.”
• Policy Legislation Support: The two parties in the United States promote the implementation of the “GENIUS Act”, paving the way for banks to issue stablecoins, while WLF seizes the opportunity to capture compliance dividends.

According to CryptoQuant data, the market capitalization of dollar stablecoins has increased by 46% over the past year, making it the fastest-growing sector in the cryptocurrency space. If USD1 can penetrate the institutional market, it is expected to carve out new market share in the landscape dominated by Tether (USDT) and Circle (USDC).

Development prospects: Opportunities and challenges coexist.

advantage

• Political resource empowerment: The Trump administration’s pro-crypto policies (such as the creation of a Bitcoin strategic reserve) provide endorsement for projects.
• Institutional-grade infrastructure: BitGo’s custody and audit mechanisms create a competitive barrier.

Risk

• The market is highly crowded: giants like PayPal, Gemini, and Ripple have all issued stablecoins, making user migration costs high.
• Systemic risk controversy: The European Central Bank warns that private stablecoins may undermine the traditional financial system, provoking resistance from sovereign nations.

Conclusion: The Breakthrough of Institutional Markets

World Liberty Financial’s USD1 provides differentiated institutional-level solutions for the stablecoin market by integrating political resources, compliance frameworks, and cross-border financial scenarios. Despite facing competition from giants and regulatory games, it has initially validated the feasibility of its business model based on the dollar strategy of the Trump administration and early sovereign-level cooperation cases. If it can continue to penetrate the global institutional payment network, USD1 may become a key variable in reshaping the stablecoin landscape.