In a combination of politics and blockchain, Donald Trump’s World Liberty Financial launched USD1—a dollar-pegged stablecoin—on March 24, 2025. Built on Ethereum and BNB Chain, USD1 represents Trump’s most extensive push into the crypto space, after previously calling it “a disaster waiting to happen”.
The USD1 Blueprint: More Than Just a Stablecoin
- Collateral: 1:1 USD reserves audited by a “top-tier firm” (name not disclosed for NDA reasons).
- Multi-Chain Deployment: Objectives supported on Ethereum and BNB Chain.
- Unique Concept: Branded as “America First” cryptocurrency, including perks for merchants affiliated with Donald Trump.
CZ Weighs In: “A Masterstroke or a Gimmick?”
Binance founder Changpeng Zhao (CZ) welcomed the project on the BSC.
USD1 can be “a fascinating experiment in politicized finance but be aware: “Stablecoins thrive on neutrality. Can USD1 survive a polarized America?”
USD1 vs. USDT/USDC: The Political Edge
Although Tether and Circle have no political association, USD1 has connections to Trump’s political base:
- Loyalty Rewards: Holders earn “Liberty Points” redeemable for Trump NFT collections.
- Merchant Networks: Partnered businesses gain visibility on pro-Trump platforms.
- Campaign Tool: There are speculations that USD1 would be used to fundraise during the 2024 campaign.
The Risks: Regulation, Trust, and Volatility
- SEC Scrutiny: Regulatory probes into reserve transparency loom.
- Brand Risk: Trump’s polarizing image could deter non-supporters.
- Market Impact: USD1’s 500M launch cap pales next to USDT’s 100B+ dominance.
USD1’s Uncharted Territory
Trump’s USD1 isn’t only a stablecoin—it’s a stick test for crypto’s relationship to politics. Critics question its long-term viability, while supporters hail it as a bridge between MAGA and Web3. One thing is sure: In crypto, even presidents will turn on a dime.
