tl;dr
- Trump has been involved in the launch of meme coins like the TRUMP token, which saw a large market cap.
- World Liberty Financial (WLFI), a DeFi platform, was launched by Trump, his sons, and Zach Witkoff.
- WLFI has its governance token, WLFI, and a stablecoin called USD1.
- USD1 is backed by U.S. Treasury bills, dollar deposits, and cash equivalents, managed by BitGo.
An Introduction to Trump’s Crypto Ventures
During Donald Trump’s first term as President, his administration took a largely hands-off approach to cryptocurrency regulation. Agencies like the SEC and CFTC oversaw the sector, with the SEC cracking down on fraudulent ICOs and the CFTC approving Bitcoin futures trading. Despite these developments, Trump was openly skeptical of cryptocurrencies, declaring in 2019, “I am not a fan of Bitcoin and other cryptocurrencies.” He warned they could facilitate illicit activity and undermine the U.S. dollar.
However, in a reversal, Trump embraced crypto upon returning to office in 2025, branding himself as the “Crypto President.” With this shift, Trump’s policies contrast sharply with the restrictive stance of the Biden administration. His administration introduced a national strategic crypto reserve to store Bitcoin, Ethereum, Solana, and other digital assets, positioning the U.S. as a leader in blockchain innovation.
He also launched an NFT series and meme coins like the TRUMP token, one of which soared to a $15 billion market cap, and companies like World Liberty Financial.
Trump Digital Trading Card #10
What is World Liberty Financial?
World Liberty Financial (WLFI) is a DeFi platform launched in 2024 by Donald Trump, his sons, and Zach Witkoff. Positioned as a crypto-based alternative to traditional banking, WLFI aims to provide financial services through blockchain technology. The venture has drawn widespread attention due to its leadership and its close ties to Trump’s pro-crypto policies.
The project has faced scrutiny over potential conflicts of interest, particularly as Trump’s administration supports crypto-friendly policies. Additionally, industry insiders have raised concerns about WLFI’s governance structure and its lack of voting rights for token holders.
WLFI’s ecosystem revolves around its governance token, WLFI, which has raised over $550 million since its launch. While marketed as a DeFi project, critics argue that its governance model is highly centralized, with the Trump family retaining the majority of revenue and decision-making power. The platform also introduced the USD1 stablecoin.
What is USD1 and How Does it Work?
USD1 is a recently announced US dollar-pegged stablecoin developed by World Liberty Financial.
The stablecoin will initially launch on Ethereum and BNB, with plans for multi-chain expansion. WLFI has positioned USD1 as a solution for sovereign investors and institutions, emphasizing transparency and liquidity.
While regular audits are promised, the identity of the auditing firm remains undisclosed, raising some concerns.
How Does USD1 Work?
USD1 is designed to maintain a 1:1 peg with the U.S. dollar, providing institutional-grade stability to the cryptocurrency market. Unlike algorithmic stablecoins, USD1 is backed by U.S. Treasury bills, dollar deposits, and cash equivalents, with reserves managed by BitGo, a regulated custodian.
USD1 and the Crowded Stablecoin Market
USD1 enters an already saturated stablecoin market dominated by USDT, USDC, and DAI, which remain the preferred choices for traders. Recent entrants like Ripple’s RLUSD, PayPal’s PYUSD, and Ethena’s USDe have further intensified competition.
Unlike its rivals, USD1’s primary advantage lies in its association with Donald Trump, whose brand recognition has driven early interest.
However, questions remain about its long-term viability. Whether USD1 becomes a major player in stablecoins or follows the fate of Trump’s NFT collection is unknown.
