Trump-Backed USD1 Stablecoin Launch with Big Claims
- Trump-linked WLFI launches USD1 stablecoin, backed by US treasuries, audited for transparency, targeting institutional adoption with BitGo custody.
- CZ warns of stablecoin scams; official token not yet trading. On-chain data shows Wintermutes involvement in the token testing.
- USD1s smart contract, deployed 20 days prior, sees over 10,000 transactions, indicating high activity on BNB Chain
Trump-inspired World Liberty Financial Inc or WLFI, is finally launching USD1, the much antipated dollar-pegged stablecoin on the Ethereum (ETH) and Binance Smart Chain (BSC) with plans to expand to other blockchains shortly.
As per the Medium post, the stablecoin will be redeemable 1:1 for the US dollar (USD), 100% backed by short-term US government treasuries, US dollar deposits, and other cash equivalents. The reserve portfolio will be regularly audited by a third-party accounting firm, to ensure transparency. Zach Witkoff, WLFI co-founder, commented:
USD1 provides what algorithmic and anonymous crypto projects cannot access to the power of DeFi underpinned by the credibility and safeguards of the most respected names in traditional finance. Were offering a digital dollar stablecoin that sovereign investors and major institutions can confidently integrate into their strategies for seamless, secure cross-border transactions.
Additionally, BitGo will serve as the custodian of the USD1 reserves, providing institutional clients with access to deep liquidity and trading, all securely held and managed within regulated, qualified custody.
The launch of the stablecoin marks a significant advancement in institutional-ready digital assets, as USD1 prioritizes stability through its conservative approach instead of bringing complex risk factors by competitors, said Mike Belshe, BitGo CEO.
By avoiding complicated yield-generating mechanisms, USD1 offers the clarity and security required for broader institutional adoption, he added.
CZ Warns of Fake USD1
Trump-linked WLFI along with crypto market maker Wintermute has been reportedly testing the dollar-backed stablecoin for quite some time. According to lookonchain data, there were interactions between the contract and the wallet associated with the crypto market maker Wintermute.
The development created a huge frenzy sparking Binances former CEO CZ to caution against scammers. He also clarified that the official USD1 is not yet open for trading, alerting users against trusting fraudulent coins bearing the same name.
As per BSCScan, the smart contract was deployed 20 days ago. Since then, the contract has recorded more than 10k transactions, highlighting the significant activity.
Read more: https://www.tronweekly.com/trump-usd1-stablecoin-launch/
Text source: TronWeekly
