Crypto observers were speculating on Monday that World Liberty Financial (WLFI), the decentralized finance (DeFi) platform backed by U.S. President Donald Trump and his family, might be testing its long-awaited dollar stablecoin before rolling out for the broader public.
Blockchain sleuths earlier today noted a flurry of activity with a token labeled as World Liberty Financial USD (USD1) on blockchain monitoring websites Etherscan and BscScan. Blockchain data shows that USD1 was deployed earlier this month on the Ethereum and BNB Chain networks and series of transactions with the token occurring over the past couple weeks.
Some transfers included addresses linked to Wintermute, a large digital asset trading firm and market maker, and crypto custodian BitGo, according to Arkham Intelligence data. The token’s supply currently stood at around 3.5 million-3.5 million on Ethereum and BNB Chain, per Etherscan and BscScan.
Blockchain transactions with the USD1 token on Ethereum (Arkham Intelligence)
Changpeng CZ Zhao, founder of crypto exchange giant Binance, brought widespread attention to the token by “welcoming” the project on BNB Chain in a post with a screenshot of the USD1 BscScan profile shared with his 10 million followers. The post, he later saidtriggered a wave of copy-cats aiming to capitalize on the new-found attention.
WLFI, reacting in a X postsaid USD1 is not currently available for trading and crypto users should beware of scams.
Stablecoin buzz
WLFI, a project spearheaded by Zachary Folkman and Chase Herro, made a splash last year as one of the first crypto projects enjoying the backing of Trump. The protocol aims to provide a blockchain-based marketplace where users can borrow and lend cryptocurrencies, create liquidity pools and transact with stablecoins.
It’s been widely known that the project is working on crafting its own stablecoin, but there hasn’t been any official communication about exact plans and timing of launching the token publicly. CoinDesk has reached out to the team, but hasn’t received any replies.
Stablecoins are one of the fastest-growing corners of the crypto industry and widely regarded as the killer use case for blockchains. With their prices pegged to an external asset, predominantly to the U.S. dollar, they are widely used as a crypto trading pair and transactions on blockchain rails. They are also increasingly used for everyday payments, remittances and savings, attracting the attention of many venture capital investors.
Buzz around the asset class rejuvenated over the past months as the Trump administration elevated stablecoin regulation to the top of its crypto agenda. Treasury Secretary Scott Bessent said that stablecoins have a key role in preserving the U.S. dollar’s global role as a reserve currency.
GIPHY App Key not set. Please check settings