Donald Trump-Linked Crypto Project Sets its Sights on Launching a Stablecoin

Donald Trump's crypto venture, World Liberty Financial, recently made waves after raising $14 million in an initial token sale, setting the stage for more ambitious projects.

The group is reportedly developing its own stablecoin, aiming to offer a crypto asset pegged to the U.S. dollar. However, sources suggest the team is taking careful steps to ensure the stablecoin’s safety and compliance before bringing it to the market.

Earlier signs hinted at this stablecoin direction, including World Liberty Financial’s recent appointment of Paxos co-founder Rich Teo to lead its stablecoin and payment division. Alongside the stablecoin, the group is working on a decentralized finance (DeFi) platform for borrowing and lending, underlining Trump’s broader goal to make crypto accessible for retail investors. This mission aligns with their campaign to foster widespread use of stablecoins and DeFi, styled as an effort to “make crypto and America great again.”

Stablecoins play a crucial role in the crypto landscape, acting as stable assets in volatile markets and facilitating transactions in areas with limited U.S. dollar access. However, launching a successful stablecoin would require significant collateralization—similar to market leader Tether, which holds billions in U.S. Treasury bills. World Liberty Financial would also need partnerships with top exchanges like Binance and Coinbase to ensure widespread adoption.

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Trump’s involvement brings unique angles, especially with the possibility of a return to the White House as Congress considers stablecoin regulation. His stance is clear: he has opposed a U.S. central bank digital currency (CBDC), claiming it would grant the government unchecked control over individual finances.

World Liberty Financial has encountered hurdles, including challenges in token sales and competition from established players. Nonetheless, the project remains focused on leveraging the Trump brand to carve out a niche in the stablecoin market, potentially reaping substantial profits as the demand for decentralized financial solutions grows.

Source

Kosta Gushterov