World Liberty Financial Launches USD1 Stablecoin

SOURCE www.cnbc.com
World Liberty Financial, backed by President Donald Trump and his family, has launched a stablecoin called USD1, pegged to the U.S. dollar. The company raised $550 million through token sales, with potential political entanglements. Stablecoins are becoming increasingly popular in the market.

Key Points

  • USD1 stablecoin pegged to the U.S. dollar
  • Market cap for dollar-backed stablecoins has been growing
  • Stablecoins are used for trading and as collateral in DeFi

Pros

  • USD1 stablecoin is backed by short-term U.S. government treasuries and other cash equivalents
  • Provides access to DeFi with credibility from traditional finance
  • Raised $550 million through token sales

Cons

  • Potential political entanglements with the Trump family
  • Scrutiny around financial structure