WLFI Announces Institutional-Grade Stablecoin USD1 on Ethereum and BNB Chain

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The stablecoin market is undergoing explosive growth, with its total market capitalization surging past $234 billion and attracting a wave of new entrants. Among the most anticipated developments is the upcoming launch of USD1, a dollar-pegged stablecoin from WLFI, a crypto initiative associated with former U.S. President Donald Trump. Designed specifically for institutional use, USD1 aims to combine regulatory compliance, real-world asset backing, and blockchain efficiency to serve as a next-generation digital dollar solution.

This move underscores WLFI’s strategic positioning in the evolving digital asset landscape—leveraging favorable regulatory momentum and powerful brand recognition to capture a share of the rapidly expanding stablecoin ecosystem.

Launching on Ethereum and BNB Chain: A Focus on Institutions

WLFI’s foray into stablecoins has been in motion for some time.

In October last year, Rich Teo, former CEO of Paxos—the firm behind BUSD—joined WLFI as Head of Stablecoins and Payments. His appointment signaled serious intent, given Paxos’ experience in regulated stablecoin issuance. Shortly after, Decrypt reported that WLFI was exploring the development of its own stablecoin, then still in early stages.

By mid-March, Bloomberg revealed that WLFI had held discussions with Binance about potential collaboration, including co-developing a USD-backed stablecoin. While no formal agreement has been confirmed, these talks highlight the project’s ambition to align with major players in the crypto space.

Now, the speculation has ended: USD1 is officially coming.

According to WLFI, USD1 will be fully backed 1:1 by U.S. dollars and high-quality reserves, including short-term U.S. Treasury bills, cash deposits, and other cash equivalents. Initially launched on Ethereum and BNB Chain, the stablecoin is designed for seamless interoperability across leading blockchain networks, with plans to expand to additional protocols in the future.

To ensure trust and transparency, reserves will be held by BitGo, one of the largest regulated digital asset custodians in the U.S., and audited regularly by an independent accounting firm.

Unlike algorithmic or decentralized stablecoins that carry higher risk profiles, USD1 prioritizes safety and compliance—making it particularly appealing to institutional investors and financial entities.

👉 Discover how institutional-grade stablecoins are reshaping global finance

Zach Witkoff, co-founder of WLFI, emphasized that USD1 is “tailored for sovereign wealth funds and large institutions,” positioning it as a secure, efficient tool for cross-border transactions and DeFi integration. Early on-chain data shows the USD1 smart contract was deployed three weeks ago, with a total supply of approximately 3.5 million tokens. Currently, only six addresses hold the token—including market maker Wintermute—indicating controlled distribution during testing phases.

Notably, Binance CEO CZ welcomed the development, stating that more stablecoins enhance ecosystem resilience. He also issued a warning: scammers have already created fake versions of “USD1,” so users should exercise caution until official trading begins.

Why USD1 Stands Out in a Crowded Market

The global stablecoin market is growing at an unprecedented pace.

As of March 26, total stablecoin market cap exceeded $234.6 billion, up 65.3% year-over-year (DeFillama). USDT and USDC dominate with nearly 87.3% market share, but demand continues to rise across both centralized exchanges and decentralized finance (DeFi) platforms.

According to a joint report by Dune and Artemis, stablecoin supply reached $214 billion by February 2025, with **30 million active addresses** and over **$35 trillion in annual transaction volume**—twice that of Visa. While centralized exchanges remain liquidity hubs, DeFi drives the majority of transaction activity.

This growth is supported by increasingly clear regulatory frameworks in key jurisdictions like the U.S., EU, Japan, and Singapore. For instance:

Meanwhile, traditional financial giants are entering the space:

Despite this competition, USD1 holds distinct advantages.

Regulatory Tailwinds Favor Compliance-Focused Stablecoins

One of USD1’s biggest strengths lies in timing. The U.S. is moving toward comprehensive stablecoin regulation, creating favorable conditions for compliant issuers.

Several key legislative proposals are advancing:

Among them, the GENIUS Act stands out. Introduced in February 2025 by bipartisan lawmakers, it seeks to establish a federal framework for payment-focused stablecoins. Key provisions include:

The bill recently passed the Senate with an 18–6 vote and is backed by the White House. Bo Hines, Executive Director of the President's Working Group on Digital Assets, indicated that a final version could reach President Trump’s desk within two months.

This regulatory clarity reduces uncertainty for institutional adoption—and USD1 is positioned to benefit directly.

Brand Power Meets Strategic Ecosystem Development

Beyond policy, Trump’s personal brand provides WLFI with unique visibility and investor appeal. The project raised **$550 million through community sales**, with $390 million in net proceeds—an impressive figure reflecting strong market confidence.

WLFI has also built strategic partnerships across DeFi’s top protocols:

These integrations position USD1 not just as a store of value, but as a foundational layer for institutional participation in DeFi.

👉 Explore how compliant stablecoins are unlocking institutional DeFi access

Core Keywords Driving Market Relevance

Key terms naturally embedded throughout this analysis include:

These reflect both user search intent and the technical-commercial scope of USD1’s value proposition.

Frequently Asked Questions (FAQ)

Q: What blockchains will USD1 launch on?
A: USD1 will debut on Ethereum and BNB Chain, with plans to expand to other networks later.

Q: Is USD1 backed by real assets?
A: Yes. It is fully backed by U.S. Treasury bills, cash deposits, and cash equivalents—ensuring 1:1 redeemability.

Q: Who is managing USD1’s reserves?
A: BitGo serves as custodian, with regular third-party audits to maintain transparency.

Q: Is USD1 available for public trading yet?
A: No. The token is currently in testing phase with limited distribution. CZ has warned about scam versions circulating online.

Q: How does GENIUS Act impact USD1?
A: If passed, it would provide a clear federal framework for USD1-like stablecoins, excluding them from SEC jurisdiction and accelerating mainstream adoption.

Q: Who is the target audience for USD1?
A: Primarily institutions—sovereign funds, hedge funds, and large enterprises needing secure digital dollars for global transactions.

Final Outlook: A Strategic Move at the Right Time

The launch of USD1 represents more than just another stablecoin—it reflects a convergence of regulatory readiness, institutional demand, and strategic branding.

With backing from trusted custodians, alignment with upcoming U.S. legislation, and deep integration into leading DeFi ecosystems, USD1 is poised to become a significant player in the next phase of digital finance.

As global markets embrace tokenized assets and central bank digital currencies (CBDCs) loom on the horizon, privately issued, compliant stablecoins like USD1 may play a critical role in preserving the U.S. dollar’s dominance in the digital era.

👉 Stay ahead of the stablecoin revolution with cutting-edge insights