World Liberty Financial has announced the launch of the USD1 stablecoin, designed for institutional use and available on Ethereum and Binance Smart Chain platforms.
USD1 Launch and Its Backing
World Liberty Financial (WLFI) announced the introduction of USD1, a stablecoin for secure and reliable transactions. The coin guarantees a 1:1 ratio with the US dollar and will initially be available on the Ethereum and Binance Smart Chain protocols. USD1's reserves will be custodied by BitGo and fully backed by short-term government bonds and cash equivalents. This aligns with the strategy outlined by WLFI's co-founder Zach Witkoff, who stated, '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.'
Market Reactions and Regulatory Potential
Industry figures have reacted positively, with Treasury Secretary Scott Bessent at the Crypto Summit emphasizing the importance of stablecoins in maintaining the U.S. dollar's global dominance. The market has shown a 46% increase in overall stablecoin capitalization, which now surpasses $230 billion. According to CoinMarketCap data, on March 26, 2025, USD1 is priced at $1.00 with a fully diluted market cap of $12.00 billion. Trading volume reached $3.25 million in 24 hours despite a circulating supply of zero. The price has shown slight stability changes, evidencing limited volatility. The Coincu research team indicates potential regulatory impacts given the backing of high-profile figures and strategic reserve management. This could drive confidence among larger institutions, reinforcing the use of stablecoins in financial ecosystems.
The launch of USD1 by World Liberty Financial promises to strengthen the position of stablecoins in the market, offering secure and reliable tools for major institutional users.
