- World Liberty explores stablecoins tied to the US dollar.
- Paxos’ co-founder joins the organization to manage stablecoin initiatives.
Donald Trump’s crypto venture, World Liberty Financial, is ready to launch its own stablecoin, adding to the $14 million raised from a governance token sale. According to sources familiar with the situation, Trump’s team is leading the effort, which aims to develop a stable digital currency pegged to the US dollar. Development is still ongoing as the team tries to ensure the stablecoin’s security before release.
Seasoned stablecoin professionals are developing the previous president’s initiative. Rich Teo, the co-founder of Paxos, a major stablecoin issuer, has joined World Liberty as the stablecoin and payment lead, sparking industry speculation.
Stablecoins are important in the crypto ecosystem as they allow users to store value while avoiding market volatility. Stablecoins, such as USDC and Tether, link to traditional fiat currencies and provide stability for cryptocurrency traders. They also serve as accessible financial alternatives and facilitate DeFi applications. World Liberty’s stablecoin objectives mirror these functions, but it confronts a challenging battle in the competitive stablecoin industry.
Building Stablecoin Infrastructure in a Crowded Market
Launching a successful stablecoin requires more than just technical expertise. Major exchanges like Coinbase and Binance must be willing to list the cryptocurrency in order to reach an extensive audience. If Trump is re-elected, he will have unique negotiating leverage with both exchanges, both of which are under SEC inspection.
With regulatory demands increasing, stablecoins such as World Liberty face new legal concerns. The SEC has strongly targeted crypto businesses for issuing unregistered securities, most notably Binance, although these charges were dropped. U.S. lawmakers are also reviewing stablecoin legislation, potentially allowing a re-elected Trump to influence the legality of his own project’s services.
Despite regulatory challenges, Trump’s proposal is likely to gain from the lucrative stablecoin issuance market. Similar companies, such as Tether, have taken advantage of yield-bearing investments, generating record earnings of more than $5 billion. World Liberty Financial has stated that its objective is to make crypto and America great again, with the goal of increasing stablecoin usage while maintaining the US dollar’s global dominance.
World Liberty’s growth demonstrates Trump’s desire for a DeFi-focused future by providing alternative financial models in a potentially more regulated environment. While public adoption of the governance token has been modest, raising only 4.7% of its $300 million goal, Trump’s team believes the stablecoin’s introduction will set a new standard for DeFi in the United States.
