World Liberty Financial is set to introduce a stablecoin backed by the U.S. dollar, positioning itself in the crypto industry alongside major players like Tether and USDC. The involvement of Rich Teo and former President Donald Trump in the crypto venture suggests significant potential, with the stablecoin’s launch potentially impacting Bitcoin and broader market trends.
Following Trump’s recent announcement of the World Liberty Financial crypto platform launch, it was revealed that the initiative is planning to introduce a U.S. dollar-backed stablecoin. This move would position World Liberty Financial among other companies like PayPal, Coinbase, and Robinhood, who have also ventured into stablecoins.
Creating a stablecoin requires substantial capital, navigating regulatory and legal complexities, and competing with established giants like Tether and USDC. The project, still in development, prioritizes security before its market release. Rich Teo, a co-founder of Paxos and a notable figure in the stablecoin sector, has joined World Liberty earlier this month to lead the stablecoin and payments divisions.
The stablecoin project’s success could be highly profitable for the Trump family, as indicated by the recent $5.2 billion in profits reported by Tether for the first half of 2024. World Liberty Financial’s governance token, WLFI, was launched in early September, allowing users to vote on the project but does not yield income and remains nontransferable. The project aims to raise $300 million from over 100,000 accredited investors and has currently secured $14 million.
As the first former President to enter the crypto market, Trump’s involvement could influence Bitcoin’s price, as seen in previous instances of his public use of Bitcoin impacting the market. At the time of writing, according to CoinMarketCap, Bitcoin (BTC) is trading at $69,804.37, with a 2.67% increase in the past day and a 4.03% increase over the past week.
