Trump and USD1: Stablecoin as a Global Strategy Tool

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by Giorgi Kostiuk

2 years ago


The launch of the new USD1 stablecoin, backed by Donald Trump and his family, has sparked much discussion not only within the crypto industry but also in the global financial market. What drives this support, and what impact might it have?

Stablecoin Support: More Than Blockchain Innovation

According to Mateusz Kara, CEO of European crypto payment giant Ari10, Trump's support for stablecoins is driven not just by an interest in blockchain innovation. The main goal is to create more receptive global markets for U.S. debt. Kara states: "The strengthening of the stablecoin market is really aimed at making the world a new, receptive market for U.S. bonds."

The Launch of USD1—A New U.S. Wave

USD1 was launched on March 25 by World Liberty Financial, a venture affiliated with the Trump family. This token is backed by dollar treasuries and will operate on Ethereum and Binance Smart Chain. According to CNBC, the operation is already backed by over $500 million in funding and 85,000 verified users. Treasury Secretary Scott Bessent noted that "stablecoins will be a key part of ensuring the U.S. remains the dominant reserve currency."

Implications for Europe and the Global Economy

For European markets, USD1 could act as a call to action. Kara believes Europe must strengthen its euro-based stablecoin infrastructure. He emphasizes the importance of regulatory progress, like the EU's MiCA framework, to create a safe and competitive environment for innovation. Kara states that "stablecoins are no longer just about crypto; they are becoming tools of global monetary strategy."

The launch of USD1 showcases how stablecoins can be used not only for crypto transactions but also as a strategic financial tool. Europe faces the challenge of how quickly it will move to strengthen its position on the global stage.

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