The planned digital asset, known as USD1, will be backed by short-term US Treasuries, dollar deposits, and other cash-equivalent reserves. BitGo Inc. has been designated as the custodian, and the tokens will initially be issued on the Ethereum and Binance Smart Chain networks. The company has not provided a timeline for the launch.
The initiative aligns with ongoing efforts in Washington to integrate stablecoins into the financial system. Both Congress and the Trump administration have been advocating for legislation that would establish a clearer regulatory framework for these digital assets.
Two bills currently advancing in the House and Senate are looking to formalise the role of stablecoins in global payments infrastructure. The sector has continued to attract investment, pushing the total market value of stablecoins beyond USD 230 billion, despite challenges faced by other areas of the cryptocurrency industry.
According to Yahoo Finance, World Liberty Financial has been linked to discussions with Binance Holdings Ltd. regarding a potential collaboration on a stablecoin project. Reports indicate that Binance was approached about such a partnership, though its founder later stated publicly that neither he nor the exchange has any business relationship with World Liberty Financial. Binance representatives declined to comment on the matter.
Concerns have been raised regarding the risks associated with stablecoins, particularly regarding financial stability and the potential for illicit financial activity. Critics warn that the absence of regulatory oversight could increase the likelihood of financial disruptions similar to past bank crises.
The involvement of the Trump-backed company has also drawn scrutiny, with some lawmakers citing past legal challenges faced by Binance as a reason for stronger regulatory measures. During a recent Senate hearing, concerns were raised about how proposed legislation could enable prominent figures such as Trump and Elon Musk to issue their own stablecoins with limited oversight.
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