What is USD1?
Stablecoins are highly demanded in the crypto market because they enable fast and inexpensive transactions, including cross-border transfers. They are also used as a store of value as an alternative to fiat currencies like the U.S. dollar, especially within decentralized finance (DeFi). Additionally, stablecoins protect investors from the volatility of cryptocurrencies such as Bitcoin and Ethereum.
What is World Liberty Financial USD?
World Liberty Financial USD (USD1) is a new stablecoin launched and listed on crypto exchanges in April 2025. The USD1 stablecoin belongs to the ecosystem of the popular World Liberty Financial protocol.
The World Liberty Financial USD stablecoin is pegged to the U.S. dollar at a 1:1 ratio, and its reserve consists of U.S. Treasury bonds, dollars, and other cash equivalents.
Thanks to the popularity of the decentralized World Liberty Financial protocol, the USD1 stablecoin quickly attracted significant liquidity and within just a month ranked among the top 50 cryptocurrencies according to CoinMarketCap (CMC).
As of May 2025, the market capitalization of World Liberty Financial USD stands at $2.12 billion, placing the stablecoin 46th in the overall CMC cryptocurrency ranking. By market cap, World Liberty Financial USD is also among the top five stablecoins, trailing only Tether (USDT), USD Coin (USDC), Dai (DAI), and Ethena USDe (USDe).
In early May 2025, the market capitalization of the World Liberty Financial USD stablecoin surged by nearly $2 billion. According to media reports, this amount was invested by MGX, a company based in Abu Dhabi headed by a royal family member.
The World Liberty Financial protocol behind the USD1 stablecoin is closely linked to Donald Trump's election campaign. Among the board members of the World Liberty Financial crypto project are Donald Trump's two sons — Eric Trump and Donald Trump Jr. — and the son of well-known investor Steve Witkoff.
The New York Times describes World Liberty Financial as a protocol that "blurs the lines between private enterprise and government politics in the most unprecedented way in [financial] history."
However, in the second half of 2024, the U.S. Securities and Exchange Commission (SEC) scrutinized World Liberty Financial and initiated an investigation into the crypto project. After Donald Trump took office as U.S. president, the SEC investigation into World Liberty Financial and the company of Tron founder Justin Sun was halted. Justin Sun himself is an investor in the World Liberty Financial project.
The main goals of creating the World Liberty Financial USD stablecoin are:
- Meeting demand: stablecoins are an alternative to traditional fiat currencies in the DeFi market.
- Increasing accessibility of decentralized financial instruments that actively use stablecoins;
- Providing secure DeFi tools for fast and inexpensive cross-border transactions.
About the World Liberty Financial USD token
The World Liberty Financial team announced the launch of their stablecoin as early as March 2025. Initially, the World Liberty Financial USD token was available on two blockchains:
- Ethereum, as an ERC-20 token;
- BNB Smart Chain is a BEP-20 token.
After the SEC investigation against World Liberty Financial and Tron ended, it became known that the USD1 stablecoin would also be integrated into the Tron blockchain as a TRC-20 token.
At the time of USD1's exchange listing, the stablecoin's market capitalization was only $127 million. Due to the small market cap and high volatility, USD1 lost its peg to the U.S. dollar shortly after listing, dropping to $0.99.
However, within a couple of days, the price of World Liberty Financial USD stabilized, and volatility decreased. Since then, the stablecoin's price has deviated significantly from the U.S. dollar only once — in May 2025 — when USD1's price rose to $1.01.
One of the primary objectives of the World Liberty Financial USD stablecoin is to strengthen the status of the U.S. national currency within decentralized finance. The USD1 token is used in the World Liberty Financial ecosystem for regular payments, cross-border transfers, and lending in the DeFi market, enabling income generation from digital assets through decentralized finance.
In addition to the USD1 stablecoin, the World Liberty Financial ecosystem includes another token with the short name WLFI, also issued on the Ethereum blockchain as an ERC-20 token.
The WLFI token is used alongside the World Liberty Financial USD stablecoin. Its key functions include governing the ecosystem, developing communities, paying transaction fees, and rewarding staking.
