USD1 is a USD stablecoin launched by World Liberty Financial Inc. (WLFI) in March 2025, pegged at a 1:1 ratio to the US dollar. It is fully backed by US Treasury bills, USD deposits, and cash equivalents, and is held in custody by the professional digital asset custodian BitGo.
As a cryptocurrency project led by the Trump family, WLFI is over 60% held by DT Marks DEFI LLC (Trump family-controlled) and is directed by Eric Trump.
USD1 has developed rapidly since its launch, having been online for only four months on Ethereum and BNB Achieving multi-chain deployment on the Chain, with a circulation of over 2.1 billion USD, ranking among the top stablecoins globally.
Project Background: Dual Support from Compliance Framework and Trump Family Resources
The positioning of USD1 is clear - it connects traditional finance with compliant channels in the crypto finance sector. Its reserve asset transparency is verified on-chain in real-time through the Chainlink PoR (Proof of Reserve) mechanism, with virtually zero fees for the minting and redemption process, significantly lowering the entry and exit barriers for both institutional and individual users.
The team composition integrates the dual genes of traditional finance and the cryptocurrency industry. Founder Zach Witkoff comes from a real estate family, operations head Zachary Folkman has experience in DeFi startups, while the deep involvement of Eric Trump from the Trump family provides political and resource backing for the project.
From October 2024 to March 2025, WLFI raised a total of 550 million USD through token sales, with investors including prominent figures such as Justin Sun, the founder of TRON, and the Abu Dhabi sovereign wealth fund MGX.
The capital strength provides a solid foundation for its compliant operations and ecological expansion.
USD1 Liquidity pool scale
The rapid penetration of USD1 in the DeFi ecosystem is attributed to the strong support of early strategic partners. On April 12, 2025, DWF Labs announced the establishment of six USD1 liquidity pools, with a total value of 18 million USD, covering the two major public chains of Ethereum and BNB Chain.
These pools are diverse and contain a combination of stablecoins and mainstream cryptocurrencies:
- On the Ethereum chain: 1.5 million USDT / 1.5 million USD1, 2.5 million USDC / 2.5 million USD1, 490,000 USDf / 500,000 USD1, 318.5 ETH / 500,000 USD1
- On the BNB Chain: 3 million USDT / 3 million USD1, 1,730 BNB / 1 million USD1
This measure directly stimulated the market performance of USD1. Within one hour of the liquidity pool announcement, the trading volume of USD1 surged from an average daily volume of 2 million USD to 10 million USD, and the price increased by 5% from 0.99 USD to 1.04 USD.
The number of active on-chain addresses increased by 30%, indicating positive feedback from the market regarding its liquidity enhancement.
Exchange Layout: Gate Adds Trading Zone
Centralized exchanges are another core pillar of the USD1 expansion strategy. On May 22, 2025, USD1 was listed on Binance, and the trading volume exceeded 1.2 million tokens within three hours of launch, indicating significant market enthusiasm.
What is more noteworthy is that Gate launched a new USD1 trading area on July 22, featuring 9 popular trading pairs, including:
- BTC/USD1, ETH/USD1, SOL/USD1
- B/USD1, BNB/USD1, TRX/USD1
- DOGE/USD1, SUI/USD1, EGL1/USD1
This move further expands the trading scenarios for USD1, providing users with more diverse stablecoin trading options. USD1 is currently available on mainstream platforms such as Bitget, forming a multi-tiered exchange ecological network.
Technical Features and Applications: Multi-chain Support and Zero Gas Fee Scenario Implementation
USD1 emphasizes transparency, low friction, and multi-chain compatibility in its technical architecture. It adopts a dynamic minting model: when users deposit US dollars, an equivalent amount of USD1 is generated, and upon redemption, it is simultaneously destroyed. The circulation of the token is entirely driven by market demand, with no pre-mining or team allocation.
The application scenarios have achieved a two-way connection between DeFi and physical consumption:
- DeFi ecosystem: Access to protocols such as Aave and Lista DAO, supporting lending and liquidity mining
- Cross-border payments: Used for the settlement of Abu Dhabi MGX’s $2 billion investment in Binance
- Off-chain consumption: Direct payments at POS terminals through the WLFI accounting card
- Zero Gas fee scenarios: Included in the BNB Chain 0 Gas fee program, enhancing the experience of small payments
Currently, the circulation of USD1 on the BNB Chain accounts for nearly 90%, with an issuance of over 113 million coins, reflecting its ecological layout focus. Combined with PancakeSwap Over $19 million liquidity pool and $20 million lending limit of Lista DAO, its DeFi infrastructure has begun to take shape.
Risk Warning: Political Affiliation and Governance Centralization
Despite the compliance custody and transparency mechanisms of USD1, there are still two main risks:
- Political connectivity: The high exposure of the Trump family may trigger stricter regulatory scrutiny, especially during election-sensitive periods.
- Centralized governance: Over 60% of the shares of WLFI are controlled by the Trump family, and there is room for optimization in decision-making transparency and benefit distribution mechanisms.
Users should note that while USD1 is pegged to the US dollar, it is not a bank savings product, and its value stability relies on the compliance of reserve asset management and the depth of market liquidity.
Summary: The New Forces of Compliant Stablecoins and Their Ecological Expansion Path
USD1 has carved out a differentiated path in the stablecoin red sea market through compliant asset custody, zero-fee mechanisms, and top-tier resource integration. Its $18 million DeFi liquidity pool and rapid listing on exchanges like Gate have confirmed the market’s preliminary recognition of its model.
With Gate adding the USD1 trading zone and launching 9 trading pairs, USD1 further extends its user coverage and trading scenarios. If it can continue to optimize in governance decentralization and policy risk isolation, USD1 may become an important bridge connecting traditional finance and the crypto ecosystem.
