Trump-Backed Stablecoin 'USD1' Launches, Shaking Up Crypto and Washington

The USD1 stablecoin was introduced in early March 2025, with its smart contract deployed on March 4. Former Binance CEO Changpeng "CZ" Zhao acknowledged the deployment, noting the project's presence on both Ethereum and BNB Chain platforms. Despite the launch, World Liberty Financial has stated that USD1 is "not currently tradeable," advising users to exercise caution regarding potential scams.

The timing of this launch aligns with legislative developments in the United States. The Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act moved out of the Senate Banking Committee on March 13 and is anticipated to be presented for a full floor vote soon. Bo Hines, Executive Director of the President’s Council of Advisers on Digital Assets, has expressed optimism that the GENIUS bill could be on President Trump's desk by June.

Launched in September 2024, World Liberty Financial has maintained a degree of secrecy regarding its operations. The platform's website indicates that President Trump and select family members control 60% of the company's equity interests. As of March 14, the company has completed two public token sales, raising a combined total of $550 million.

The involvement of President Trump and his family in World Liberty Financial has raised questions about potential conflicts of interest. Prior to the platform's first public token sale in October 2024, U.S. policymakers scrutinized the project, expressing concerns about the intertwining of public office and private enterprise. The situation was further complicated when Tron founder Justin Sun invested $30 million in World Liberty, subsequently becoming an adviser to the firm. Following President Trump's inauguration and the appointment of Mark Uyeda as Acting Chair of the U.S. Securities and Exchange Commission (SEC), the regulator sought to pause its case against Sun to explore a potential resolution. This sequence of events has led to speculation about the impartiality of regulatory actions concerning individuals and entities with ties to the administration.

The introduction of USD1 adds a new player to the burgeoning stablecoin market, which has seen significant growth over the past year. According to analytics platforms Artemis and Dune, the number of active stablecoin wallets increased by more than 50% from February 2024 to February 2025. The total market capitalization of stablecoins surpassed $200 billion in January, with Tether (USDT) and USDC remaining dominant.

The launch of USD1 by a platform closely associated with the sitting U.S. President is unprecedented and may have far-reaching implications for the cryptocurrency industry. It signals a potential shift toward greater governmental involvement and endorsement of digital assets, which could influence both market dynamics and regulatory frameworks.

World Liberty Financial's launch of the USD1 stablecoin represents a notable intersection of politics and cryptocurrency. As the digital asset landscape continues to evolve, the involvement of high-profile figures and the introduction of new financial instruments like USD1 will undoubtedly shape the future trajectory of the market. Stakeholders and observers alike will be keenly watching how these developments unfold amid ongoing legislative and regulatory discussions.