What is USD1 from WLFI? Check The Explanation About This New Stablecoin

Bittime - USD1 is a stablecoin launched by World Liberty Financial (WLFI). This project is associated with former US President, Donald Trump, and his family. So, what is USD1? Check out the review.

Even though it is still in the testing phase, USD1 has already attracted the attention of many parties. Especially, after it was discovered that the Wintermute public wallet was involved in testing this token. The following is a review of what USD1 is.

What is USD1?

Source: X (@Lookonchain)

USD1 is a stablecoin developed by WLFI and has been launched on the Ethereum network as well as BNB Chain. These stablecoins aim to provide stable value, similar to fiat currencies such as the US dollar. 

On-chain data shows that these tokens have undergone a series of tests, including cross-network transfers carried out by the Wintermute wallet.

Unlike the memecoins often associated with Trump, USD1 appears to be designed for more serious use in the DeFi ecosystem. Its existence has the potential to become an important tool in digital asset trading, lending systems, as well as traditional financial sectors that want to transition to the blockchain world.

Read also: Stablecoins Are a Priority, According to US Crypto Czar

The Big Plan Behind USD1

WLFI didn't just launch this stablecoin without a mature plan. According to reports, USD1 is part of a long-term strategy to bridge decentralized finance (DeFi) with traditional finance (TradFi). 

WLFI has formed partnerships with various blockchain protocols, including Chainlink and Aave, to expand its ecosystem.

According to Lookonchain analysis, WLFI is developing three main products that will be launched in the near future. 

WLFI Co-Founder Reveals Next Product

Zak Folkman, co-founder of WLFI, recently hinted that there is a big announcement coming. 

In a discussion with Sergey Nazarov of Chainlink, he stated that WLFI is developing more than just a stablecoin. They want to create a DeFi ecosystem that can attract the interest of large financial institutions.

Folkman revealed that WLFI has three main products in development, two of which are ready to launch. He stated that the first product is still a secret, while the other two are:

• Lending and borrowing market smart contract-based, allowing users to borrow and lend assets with on-chain collateral.

• Real world asset based (RWA) protocol which enables the tokenization and integration of assets such as real estate, bonds, and other securities into the DeFi ecosystem.

Read also: 5 Best Crypto Stablecoins 2025

Folkman also explained that WLFI adopts a different approach compared to traditional DeFi lending platforms which usually rely on DAOs (Decentralized Autonomous Organization). 

Instead, WLFI will manage its lending markets through an internal governance system, allowing them to tailor services to the needs of TradFi financial institutions.

Future USD1

Although still in the testing phase, USD1 has the potential to become a widely used stablecoin on various DeFi platforms. With support from big names like Wintermute and strategic partnerships with various blockchain protocols, USD1 has a great chance of gaining widespread adoption.

However, before it can be widely used, there are still several challenges that need to be overcome, including regulations and system security. 

WLFI has also reminded that USD1 cannot be traded at this time, so users must be careful of potential fraud.

FAQ

1. What is USD1? 

USD1 is a stablecoin developed by World Liberty Financial (WLFI) and is currently in the testing phase on Ethereum and BNB Chain.

2. Can USD1 be traded? 

Currently, USD1 cannot be traded. WLFI has reminded users to be wary of claims that suggest otherwise.

3. What is the main purpose of USD1? 

USD1 aims to be a stablecoin that is stable and can be used in a variety of DeFi applications, including loans, investments, and blockchain-based transactions.

4. What are WLFI's plans for the future? 

WLFI plans to launch a DeFi ecosystem that includes lending and borrowing platforms, as well as real-world asset-based (RWA) protocols.

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Reference 

Auric Crypto News, WLFI Quietly Tests USD1 Stablecoin – Here’s What We Know, accessed March 25, 2025.

Crypto Briefing, Trump-backed World Liberty Financial tests USD1 stablecoin on BNB Chain, accessed March 25, 2025.

Author: Y