Trump Family Enters the Stablecoin Race? Learn About the "Presidential Stablecoin" USD1 on BSC

The constantly buzzing BSC ecosystem saw another wave of excitement early this morning. The DeFi project World Liberty Financial (WLFI), supported by the Trump family, launched the USD-pegged stablecoin USD1 on BSC. After CZ shared this news, a community-created token with the same name instantly kicked off a "gold rush."

Due to numerous scams with the same name, both CZ and the WLFI official accounts posted messages warning users to beware of scams. Subsequently, the price of the related meme token USD1 quickly fell back, plummeting over 50% from its peak at the time of writing.

The total supply of USD1 exceeds $3.5 million. According to on-chain data from Etherscan and BscScan, this project issued the World Liberty Financial USD (USD1) token in early March. CZ confirmed that the stablecoin contract has been deployed on the BNB chain and Ethereum, currently open for testing to a small number of addresses.

Why Did WLFI Target a Stablecoin?

The reason WLFI targeted a stablecoin may lie in its development path. Since its initial token sale in October last year, WLFI has aimed to be the "benchmark of decentralized finance," promoting itself to U.S. and global investors. Trump himself serves as the "Chief Crypto Advocate," with his three sons named as "Ambassadors" and "DeFi Visionaries," leveraging the family's reputation as the main selling point. However, initial fundraising challenges and the market's perception of a "meme project" have subjected it to scrutiny.

In a bear market, stablecoin projects that can transition to a bull market not only provide trading, lending, and liquidity for WLFI but also offer substantial long-term returns. After the launch of USD1, it may attract a significant influx of institutional and retail funds, potentially helping WLFI shed the "meme project" label and transform into a true DeFi player. According to data from WLFIArtemis and the Dune platform, the number of active stablecoin wallets grew by over 50% from February 2024 to February 2025. In March of this year, the total stablecoin market value exceeded $230 billion, with USDT and USDC still dominating. WLFI's entry at this time may leverage favorable policies to compete for market share.

Since Trump's election, he has publicly supported cryptocurrency development multiple times, promising to make the United States the "global crypto center" and emphasizing the dollar's dominant role in the digital economy. As stablecoins serve as a vital tool for digitizing the dollar, they have naturally become a policy focus.

Related Reading: "Why Did the Crypto Market Lose $900 Billion While Stablecoin Market Cap Hit a Historic High?"

The launch of USD1 comes at a critical time as the U.S. Congress is deliberating on the "Genius Act" (Guidance for the Establishment of a New Innovation of Stablecoin Act). The bill was approved by the Senate Banking Committee on March 13 with 18 votes in favor and 6 against, and is now set to proceed to a full Senate vote. This marks an important step towards the bill becoming law, signaling the first approval of stablecoin regulation at the Senate committee level.

Bo Hines, Executive Director of the President's Digital Asset Advisory Committee, expects the bill to be submitted for Trump's signature by June. Kristin Smith, CEO of the Blockchain Association, suggests that the U.S. Congress may pass stablecoin-related legislation by August 2025, with the Genius Act seen as a key driver. If WLFI can finalize USD1 early, it not only has the potential to quickly comply after the law takes effect but may also leverage Trump's influence to seek a regulatory "green lane."

Following the Trend or Seizing the Opportunity?

Since Trump returned to the White House as the "Crypto President," his and WLFI family's every move has gradually become a leading indicator in the crypto world. The BSC ecosystem has seen a surge in activity since CZ's return, with trading volumes rebounding and various "power couple shill coins" creating a lively market. At the same time, stablecoins continue to attract attention due to their positioning as a "bear market haven." The USD1 launched by WLFI this time brings together the three major "BUFFs" of Trump's influence, the BSC ecosystem, and the stablecoin concept, naturally generating high interest.

Although the timing is auspicious, WLFI's foray into stablecoins was not a spur-of-the-moment decision but a well-thought-out strategy. As early as October 14 last year, former Paxos CEO Rich Teo joined WLFI as Head of Stablecoin and Payments, a move that had already sparked market speculation about its entry into the stablecoin space.

Then on October 29, Decrypt reported based on insider information that WLFI planned to develop its own stablecoin. At that time, the project had raised $14 million through an initial token sale, but the product still needed time to enhance security.

On March 13 this year, Bloomberg revealed that WLFI had held secret talks with Binance, with four sources disclosing discussions on the possibility of collaborating to develop a US dollar-pegged stablecoin. Although the details of the negotiations were not disclosed, this development aligns perfectly with the USD1 launch on the BSC network today.

While it is currently not possible to trade USD1, the market is still full of speculation as to whether this is once again a new type of "harvesting" strategy by Trump. After all, this year's crypto market has been spun around by this president's tariff threats, meme coin pumping, and post-dump shilling. Just the day before yesterday, he was still passionately shouting "I LOVE $TRUMP—SO COOL!!! The Greatest of them all!!!!!!!!!!!!!!!!," but obviously the market is no longer buying it. This time, his shilling only caused $TRUMP to briefly rise by about 12% before quickly falling back.

Related Reading: "Is Trump Still Positive for the Cryptocurrency Community?"

Regarding USD1 itself, is its collateral mechanism transparent? When will the audit report be released? These key pieces of information have not been disclosed. Furthermore, the outside world has been in constant controversy over WLFI and related conflicts of interest. Since the launch of the WLFI platform in September 2024, many operational details have not been made public. Its official website shows that Trump and some of his family members hold 60% of the company's shares. As of March 14, the project has completed two rounds of public token sales, raising a total of $550 million. According to the issuance document of World Liberty's initial token sale, Trump and his related company DT Marks DEFI LLC will receive 75% of the net income as fees—equivalent to a profit of $390 million.

Perhaps the bigger question lies in Trump's true motives. Is his pro-crypto stance truly aimed at driving industry development, or is it a case of "fishing in troubled waters" for family interests? Can WLFI shake off the harvesting suspicion and the stereotype of a meme project to truly become a builder in the DeFi field? Perhaps only time will tell.