U.S. Treasury Assets Backed USD1 Announced
WASHINGTON D.C., 25 March 2025 – In a bold move that merges traditional finance with blockchain technology, World Liberty Financial Inc. (WLFI) has confirmed the launch of USD1, a fully collateralized stablecoin backed by U.S. Treasury assets. An announcement that is made within 1 month of the White House Digital Asset Summit, which was held on 8th March, 2025.
The token, initially launching on Ethereum and Binance Smart Chain, is designed to maintain a 1:1 peg to the U.S. dollar, making it attractive to institutional players seeking regulatory-compliant, asset-backed digital cash equivalents.
Transparency and Institutional Trust
USD1’s reserves will be held by BitGo, a licensed crypto custodian, with periodic third-party audits ensuring reserve integrity. The stablecoin will be backed by short-term U.S. Treasuries, cash equivalents, and fiat deposits, avoiding the pitfalls of algorithmic models.
WLFI co-founder Zach Witkoff stated that USD1 aims to bridge the credibility gap between DeFi and traditional finance:
“USD1 offers what algorithmic coins cannot—stability, regulation, and trust, anchored in the U.S. financial system.”
On the side note and worth mentioning, Zack Witkoff is also one of the attendee to the White House Digital Asset Summit that happened earlier this month.
Regulatory Preparedness and Pro-Trump Backing
WLFI’s roadmap reflects the growing political embrace of crypto in the United States, especially under the administration of President Donald Trump, who has endorsed blockchain innovation and deregulation.
The stablecoin’s compliance-friendly structure makes it appealing to banks, payment providers, and international corporates looking to digitize dollar-based transactions.
Use Cases and Global Ambitions
USD1 is designed for:
- Cross-border settlements
- On-chain payroll
- Institutional-grade trading liquidity
- Tokenized finance applications
WLFI plans to expand to additional blockchains and integrate with decentralized apps (dApps) across multiple ecosystems.
Conclusion
USD1 is poised to become a benchmark for stablecoin integrity, offering a credible alternative amid increasing scrutiny of crypto markets. With political tailwinds and robust financial engineering, WLFI’s entry could reshape how institutions engage with digital dollars.
