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Trump’s USD1 Stablecoin Enters Crowded Market as Borderless CEO Highlights Adoption Hurdles on Reuters
Mar 25, 2025
March 25, 2025 – Following the announcement of Donald Trump’s stablecoin project, Kevin Lehtiniitty, CEO of Borderless.xyz, shared his view on the challenges ahead for USD1, the new dollar-pegged stablecoin from Trump’s World Liberty Financial venture. The company stated that USD1 will be fully backed by U.S. Treasuries, dollars, and other cash equivalents and is intended to serve institutional and sovereign investors for cross-border payments.
“While launching a stablecoin is easy, building an ecosystem that adopts it is a far harder task,” Lehtiniitty said, acknowledging the significant competition USD1 will face from established players like Tether and Circle. He added, “Is the President competing with other American businesses or will they find ways to partner?” — pointing to the tension between public office and private enterprise.
World Liberty Financial, co-founded by Trump, his sons, and real estate developer Steve Witkoff, launched just two months before Trump’s presidential victory. The venture has already raised $550 million through sales of its digital token, $WLFI, and says USD1 will be audited by a third-party firm, though further details have not been released.
USD1 will initially launch on Ethereum and Binance Smart Chain, with plans to expand to additional blockchains. The token’s reserves will be held in custody by California-based BitGo, which will also provide institutional clients with access to deep liquidity and trading services.
As Trump positions himself as the “crypto president” and promises to overhaul U.S. regulation, USD1's rollout is being closely watched not just for its technical merit, but for its political implications — and for whether it can gain traction in a saturated market already controlling over $237 billion in stablecoins.
For the full article, please visit Reuters.
