Trump's Crypto Venture Introduces a Stabelcoin

World Liberty Financial, a crypto venture backed by Donald Trump and his family, has launched a U.S. dollar-pegged stablecoin called USD1. The token is backed by U.S. Treasuries and cash equivalents and will soon go live on the Ethereum and Binance Smart Chain networks. CNBC reports: The development comes as the market cap for dollar-backed stablecoins -- cryptocurrencies that promise a fixed value peg to another asset -- has been climbing to new all-time-highs this year and has grown more than 46% in the past year, according to CryptoQuant. The market has long been dominated by Tether (USDT) and, more recently, Circle's USDC. "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," said World Liberty Financial co-founder Zach Witkoff. "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."

Alex Thorn is head of firmwide research at Galaxy Digital, said at the Digital Asset Summit: "Stablecoins are seen as more politically easy to do in Congress but actually will be dramatically more impactful to the United States and the world than market structure [legislation]. Who regulates who is important ... if you're one of the people that's going to be regulated, but the stablecoin bill could solidify dollar dominance for 100 years."