World Liberty Financial, the Cryptocurrency company started by Donald J. Trump and his sons, announced on Tuesday that it was planning to sell a digital currency called a stablecoin, so that the financial tires of the president are deepened with crypto while his administration relaxes the enforcement of the industry.
The Stablecoin would be known as USD1, the company wrote in a post on social media, without revealing when it would go for sale. Stablecoins, a popular form of cryptocurrency, are designed to maintain a constant value of $ 1, making them useful for many types of crypto transactions.
“No games. No gimmicks. Just real stability,” World Liberty posted on his X account.
The Stablecoin is the fourth digital currency that Mr. Trump and his business partners have launched the public in the past year. World Liberty already offers a cryptocurrency called WLFI. This month the company announced that it had sold $ 550 million of those digital coins. A business entity that is related to Mr. Trump receives a reduction in the turnover of 75 percent.
Days before his inauguration, Mr Trump also started selling a so-called memecoin-a type of digital currency based on an online joke or a famous mascot. Melania Trump launched her own memecoin that same weekend.
Mr. Trump has made aggressive trips on the cryptomarkt at the same time that his administration illuminates the enforcement of crypto companies and returns regulations. His efforts to take advantage of an industry that he supervises, amounts to a huge conflict of interest, with virtually no precedent in American history, government ethical experts have said.
Stablecoin from World Liberty contributes to that messy knot of business conflicts. The congress is considering legislation to regulate Stablecoins that can reach Mr Trump's office before the end of the year. In a speech on a crypto conference this month, Mr Trump called for “simple, common sense rules” for Stablecoins, and said that they would “expand the dominance of the US dollar”.
Stablecoins are usually supported by assets that the mint emitting has in reserve. Every time users want to redeem a stablecoin, they can go to the issuer and exchange the digital currency for the kasequivalent.
In the announcement on Tuesday, World Liberty said it would support the Stablecoin with the help of short -term American treasury, dollar deposits and other kasequivalents.
“We offer a digital dollar stablecoin that can integrate sovereign investors and large institutions with confidence in their strategies for seamless, secure cross-border transactions,” said Zach Witkoff, one of the founders of World Liberty and a son of Steve Witkoff, Mr. Trump's Advoy in the Middle East.
The emphasis on international payments increases the prospect that foreign governments or business entities can use the curr to to Curry, said Corey Frayer, who worked on the Crypto policy in the Securities and Exchange Commission under Praying Administration.
“There is a lot of coverage around this market and earlier relationships with illegal finances,” said Mr. Frayer.
Once a crypto -skeptic, Mr Trump embraced digital currencies on the campaign track last year, and promised to turn the United States into 'the Crypto capital of the planet'. The industry spent tens of millions of dollars to support Mr Trump and to finance conference candidates who have spoken about crypto.
In September Mr. started Trump World Liberty In addition to his three sons, Donald Jr., Eric and Barron, as well as Steve and Zach Witkoff. They have entrusted the daily activities of the company to two few well -known entrepreneurs, Chase Herro and Zak Folkman, who have virtually no track record in the industry.
World Liberty initially promised to create a crypto platform with which users can borrow and borrow in digital currency. But so far the company has not introduced any products, except WLFI and the Stablecoin.
In recent months, the company has started with something of a buying spree, putting together a stock of cryptocurrencies with ether, as well as lesser -known coins such as Sui and Link.
On a recent panel, Mr. Herro said that World Liberty created a “strategic reserve” of tokens. He did not explain the final objective of the stock.
The idea had clear echoes of one of Mr Trump's initiatives in the White House – the creation of an American stock Bitcoin, which he announced this month in an executive order.
