World Liberty Financial to Launch USD1 Stablecoin on Ethereum and Binance

2 mins mins

Key Points:

World Liberty Financial introduces USD1 stablecoin.
USD1 backed by short-term U.S. bonds and currency deposits.
Launch on Ethereum and Binance Smart Chain networks.

World Liberty Financial announced plans to introduce USD1, an institutional-level stablecoin, initially on Ethereum and Binance Smart Chain networks.

The launch underscores a strategic move to provide stablecoin solutions backed by short-term U.S. bonds and currency deposits, reportedly handled by BitGo for security.

Key Developments, Impact, and Reactions

World Liberty Financial’s planned launch of the USD1 stablecoin will position it as a significant entry into the stablecoin market. Zach Witkoff, co-founder, emphasized USD1’s potential to combine DeFi opportunities with traditional finance safeguards:

Mike Belshe, CEO of BitGo, highlighted the importance of securely managed reserves, noting the collaboration as pivotal for institutional asset demands.

“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. We’re offering a digital dollar stablecoin that sovereign investors and major institutions can confidently integrate into their strategies for seamless, secure cross-border transactions.”

The introduction of USD1 is expected to enhance liquidity options on Ethereum and Binance Smart Chain. Bo Hines, executive director of the President’s Council, anticipates legislative support for stablecoins, further integrating them into the U.S. economy.

President Donald Trump lauded stablecoin adoption at the Digital Asset Summit, foreseeing economic capitalization to bolster the U.S. dollar’s global dominance.

Stablecoins and Their Role in Global Finance

Did you know? Stablecoins like USD1 can influence global dollar circulation, reinforcing the USD as a dominant reserve currency, as noted by Treasury Secretary Bessent at the White House Crypto Summit.

As of March 25, 2025, Ethereum’s current price is $2,068.08 with a 24-hour change of -0.47%, according to CoinMarketCap. The total market cap stands at $249.50 billion, representing a dominance of 8.70%. Trading volume has decreased by 20.59% over the last 24 hours.

ethereum-daily-chart-9 — Ethereum(ETH), daily chart, screenshot on CoinMarketCap at 22:55 UTC on March 25, 2025. *Source: CoinMarketCap*

According to the Coincu research team, USD1’s strategic deployment on Ethereum could significantly impact liquidity flows. The team cites historical stablecoin growth trends, predicting potential boosts in cross-border financial transactions and increased acceptance among institutional investors.