Donald Trump, the President of the United States, and his family's virtual asset platform 'World Liberty Financial (WLFl)' announced on the 25th (local time) that they will launch a new stablecoin called 'USD1'.
A stablecoin is a cryptocurrency that minimizes price volatility by pegging its value to a specific asset. It is mainly linked to the US dollar or the euro of the European Union (EU).
WLFl explained that USD1 is pegged to the US dollar and backed by US short-term government bonds and other cash-equivalent assets. This stablecoin will be tradable on the blockchain networks of Ethereum, the second-largest cryptocurrency by market capitalization, and Binance, the world's largest cryptocurrency exchange. Jack Witkoff, co-founder of WLFl, said, "We will provide a digital dollar stablecoin so that investors and major institutions can conduct smooth and secure cross-border transactions."
The stablecoin market has been growing rapidly recently. According to data analytics firm CryptoQuant, the dollar-based stablecoin market has grown by 46% over the past year. Currently, Tether and USDC dominate the market, with the combined market capitalization of the two coins reaching $200 billion (approximately 290 trillion KRW).
The Trump administration plans to utilize stablecoins to strengthen the dominance of the US dollar. Increased use of stablecoins will lead to higher demand for US Treasury bonds and other dollar assets. At the recent 'Digital Asset Summit' held in New York, President Trump stated, "The cryptocurrency industry will explosively promote economic growth," and added, "Stablecoins will help expand the dominance of the US dollar."
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