A Trump-friendly USD1 stablecoin appears on Coinbase, giving citizens more access to U.S. dollars via digital coins.
The coin, created by World Liberty Financial and endorsed by Donald Trump and his sons, becomes the third-largest stablecoin on the platform, next to USDC and USDT.
Coinbase officially announced on its X posts and blog that it would be listing it. The founder of Liberty Financial, Eric Trump, likewise used some posts to signal that something was on the way.
USD1 Goes Live on Coinbase in Phases
USD1 is now supported as an ERC-20 token on the Ethereum blockchain. The stablecoin is now available for U.S. customers to buy, sell, and trade. Nonetheless, the application is to be implemented on a phased basis depending on liquidity needs. The objective of Coinbase is to minimize volatility, support stable transactions, and stabilize the market in the case of the launch.
In a bid to defend its users, Coinbase has advised people against sending USD1 via any other network that it does not support. The tokens transmitted beyond the Ethereum blockchain can irreversibly lead to loss. This is another move that strengthens the wider policy portrayed by coinbase concerning the safety of users and the integrity of markets.
The adverse listing of USD1 expands the rivalry between stablecoins. Coinbase now supports three leading stablecoins, USDC and USDT, which are already active on the platform.
USD1 Supply Surges with Institutional Backing
World Liberty Financial has produced another 205 million worth of USD1 tokens. This new issuance increased the total supply of the token to 2.4 billion. This is the highest supply surge of USD1 since April, and the stablecoin is ranked the sixth-largest stablecoin market cap globally.
The new tokens result from a large, $2 billion buy by an Abu Dhabi-based investment group conducted through Binance. At least 60 percent of the USD1 supply is linked to strategic ties and treasury reserves, indicative of confidence among institutions.
The mint’s appearance corresponds to U.S. regulation trends. It follows Fed Vice Chair Supervision Bowman’s participation in the Wyoming Blockchain Symposium. This week, Wyoming became the first U.S. state to announce its stablecoin.
New Ecosystem and Loyalty Rewards on the Way
World Liberty Financial indicated that USD1 is backed with a 1:1 ratio of U.S. dollars and Treasury. The company posted the Ethereum smart contract address of the token’s proceeds to permit others to verify reserves and supply.
The company also explained the impending loyalty scheme. Users will appreciate delightful rewards for trading, holding, and staking, as well as for participating in some DeFi protocols.
A DeFi platform will also soon be rolled out on the Ethereum blockchain. It will support borrowing and lending, staking, and USD1 integration. The project aims to create a decentralized environment that would minimize the number of banks and accelerate capital flows.
