USD1 is a stablecoin launched by World Liberty Financial (WLFI) in March 2025, pegged to the US dollar at a 1:1 ratio, designed to provide a price-stable digital dollar asset. WLFI has close ties to the Trump family (family entities hold significant shares), giving it a notable political background and institutional positioning.
USD1 is backed by 100% high liquidity reserves, including cash in US dollars, short-term US Treasury bonds, and cash equivalents, held in trust by the regulated BitGo company, with a commitment to regular third-party audits to ensure transparency and compliance. Users can exchange USD1 for US dollars at a 1:1 ratio through qualified channels (minting/redemption is usually fee-free), with secondary market trading prices remaining very close to 1 US dollar. As a stablecoin, USD1 is widely used in areas such as DeFi lending, cross-border payments, on-chain transactions, and value storage, supporting multi-chain deployments like Ethereum and BNB Chain. After its launch, it grew rapidly, exceeding a market capitalization of 5 billion US dollars by early 2026, with daily trading volumes often reaching tens of billions of dollars, making it one of the top five stablecoins globally (only behind giants like USDT and USDC).
Compared to traditional stablecoins, USD1 emphasizes institutional-level security, potential regulatory advantages from political influence, and a low-friction exchange experience, becoming an important bridge connecting traditional finance and blockchain, especially suitable for users and institutions pursuing stability and compliance.