World Liberty Financial, the cryptocurrency venture launched by former President Donald Trump, is reportedly planning to develop its own stablecoin intended to act as a substitute for the U.S. dollar.
World Liberty’s stablecoin ambitions
According to a Fortune report, the World Liberty team is currently focused on ensuring financial products are safe before they are introduced to the market.
This will require navigating a landscape fraught with regulatory uncertainty and legal challenges, especially when competing with established players such as Tether’s USDT and Circle’s USDC stablecoin. It may be far away.
Earlier this month, World Liberty acquired Rich Teo, co-founder of Paxos, the stablecoin issuer responsible for the USD-backed Paxos Standard Token (PAX), in line with recently revealed plans. announced a hire to lead its stablecoin and payments efforts. Trump Project.
Issues facing President Trump’s virtual currency project ahead of stablecoin launch
Historically, some protocols have attempted to circumvent traditional collateral methods using various cryptographic innovations, but these efforts have often failed.
Fortune highlights a notable example of these challenges in the 2022 collapse of Terraform Labs. The result has been significant financial losses across the market and increased legal scrutiny from authorities around the world on founder Do Kwon, who is currently awaiting possible extradition from Montenegro. To America.
Despite these challenges, the report notes that if President Trump’s World Liberty succeeds in issuing a stablecoin, it could see significant profits. Tether’s USDT, for example, reported a significant profit of $5.2 billion in the first half of 2024 alone, highlighting the high profitability of this market segment.
To secure funding for the effort, the Trump family venture recently whitelisted more than 100,000 accredited investors in hopes of raising $300 million in its first sale. However, it fell well short of its goal, raising only $14 million and selling only 4.7% of the available tokens.
The market capitalization of cryptocurrencies increased to $2.29 trillion on the daily chart. Source: TOTAL on TradingView.com
Featured image from Business Insider, chart from TradingView.com
