World Liberty Financial, the cryptocurrency company started by Donald J. Trump and its children, announced Tuesday that she was planning to sell a digital currency called Stablecoin, deepening the president’s financial ties with the crypt while its administration relaxes the application of the sector.
Stablecoin would be known as USD1, the company wrote in a social media post, without revealing when it would be on sale. Stablecoin, a popular form of cryptocurrency, are designed to maintain a constant value of $ 1, making them useful for many types of crypt transactions.
“No game. No expedients. Just a real stability,” he published World Liberty on his X account.
Stablecoin is the fourth digital currency that Trump and his commercial partners have marketed to the public in the last year. World Liberty already offers a cryptocurrency called WLFI. This month, the company has announced that it has sold $ 550 million of those digital coins. A commercial entity linked to Mr. Trump receives a 75 % cut of sales.
Days before his inauguration, Trump also started selling a so -called Memecoin, a type of digital currency based on an online joke or a celebrity mascot. Melania Trump put his memecoin on the market in the same weekend.
Trump has made aggressive incursions in the cryptocurrency market at the same time when his administration relieves the application of cryptocurrency companies and important regulations. His efforts to profit from a sector that Supervision is equivalent to a huge conflict of interest, with practically no precedent in American history, said the government’s ethics experts.
The Stablecoin of World Liberty adds to that disordered node of commercial conflicts. The congress is taking into consideration the legislation to regulate the Stablecoins who could reach Mr. Trump’s desk before the end of the year. In a speech at a cryptographic conference this month, Trump asked for “simple and common sense rules” for Stablecoin, saying that they would “expand the domain of the US dollar”.
Generally, Stablecoins are supported by activities that the coin issuer holds in reserve. Every time users want to redeem a stablecoin, they can go to the issuer and exchange digital money for the equivalent in cash.
In Tuesday’s announcement, World Liberty said he would have supported Stablecoin using short -term American payments, dollar deposits and other cash equivalent.
“We are offering a stablecoin in digital dollars that sovereign investors and the main institutions can integrate with confidence in their strategies for transfrontier transfrontier transactions seamlessly and safe,” said Zach Witkoff, one of the founders of World Liberty and a son of Steve Witkoff, Trump’s correspondent in the Middle East.
The emphasis on international payments raises the perspective that foreign governments or commercial entities can use curry coin with Mr. Trump, said Corey Frayer, who worked on cryptographic policy at the Securities and Exchange Commission under the Biden administration.
“There is a lot of opacity on this market and previous relationships with illegal finance,” said Frayer.
Once a cryptographic skeptic, Trump embraced digital currencies on the countryside track last year, promising to transform the United States into “The cryptographic capital of the planet”. The industry has spent tens of millions of dollars in support of Mr. Trump and to finance the congress candidates who spoke favorably on the cryptocurrency.
In September, Mr. Trump started World Liberty together with his three children, Donald Jr., Eric and Barron, as well as Steve and Zach Witkoff. They entrusted the daily operations of the company to two little -known entrepreneurs, Chase Herro and Zak Folkman, who have practically no track record in the sector.
World Liberty initially promised to create a cryptographic platform that allows users to borrow and lend digital currencies. But so far, the company has not introduced any product in addition to WLFI and Stablecoin.
In recent months, the company has embarked on a kind of embrace, putting together an stock of cryptocurrencies that includes ethereal, as well as less known coins such as on and links.
In a recent panel, Herro said that World Liberty was creating a “strategic reserve” of Token. He did not explain the final goal of the escort.
The idea had clear echoes of one of the initiatives of Mr. Trump to the White House – the creation of an American escort of Bitcoin, which announced in an executive order this month.