World Liberty Financial, a cryptocurrency venture Trump helped launch last year, announced Tuesday that it plans to launch USD1, a stablecoin pegged at a 1-to-1 ratio to the U.S. dollar.
Stablecoins are among the fastest growing segments of the cryptocurrency industry. They are typically backed by a government-issued currency, like the dollar, or to gold, making them better suited to commercial transactions than more volatile digital assets like bitcoin or other cryptocurrencies.
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“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,” Zach Witkoff, a World Liberty Financial co-founder, said in a statement Tuesday.World Liberty’s announcement comes amid a push by Congress, with strong support by the White House, to pass legislation that supporters say would make it easier for stablecoin companies to operate and grow in the U.S.
Witkoff and his father, Trump’s special diplomatic envoy Steve Witkoff, helped launch World Liberty Financial with Trump and his sons last year. Under the terms outlined on the company’s website, a Trump-owned company has the “right to receive 75% of the net protocol revenues” from World Liberty Financial after expenses.On Monday, Trump Media & Technology Group Corp. announced it was partnering with the crypto-trading firm Crypto.com to launch exchange-traded funds for investors to purchase. The funds, which are set to be released later this year, will include a “unique ETF basket of cryptocurrencies” as well as “securities with a Made in America focus spanning diverse industries such as energy,” TMTG said in an announcement.TMTG is the parent company of Trump’s social media company, Truth Social. Trump has no decision-making role at the company, but he owns a majority stake and is its largest shareholder. TMTG’s stock price jumped following the announcement.
The recent announcements add to a growing list of crypto-related projects that Trump has endorsed in ways that critics say are inappropriate for a public office holder.
Just days before taking office, Trump launched his own meme coin that initially saw a massive price spike followed by a prolonged slide. Meme coins are highly speculative assets that often start as a joke and have no real value. Trump has also promoted online watch and sneaker stores that have branched out into selling crypto-related Trump products, including a “Crypto President” timepiece that sells for $100,000.
Once a crypto skeptic, Trump has since embraced digital assets and pledged to make the U.S. the “world capital” for cryptocurrencies. He’s taken several early steps to help boost the crypto industry, which spent heavily to help Trump win last year’s election and has emerged as a potent political force.
Before taking office, the Trump family business released a voluntary ethics agreement that prohibits the president from “day-to-day” decision making of his companies and limits financial information shared with him. But that agreement doesn’t bar him from promoting his crypto-related products, like he did on social media Sunday when touting his meme coin.
“I LOVE $TRUMP — SO COOL!!! The Greatest of them all!!!!!!!!!!!!!!!!,” Trump said on Truth Social, which briefly caused a spike in the meme coin’s price.