World Liberty Financial’s planned stablecoin aims to establish a secure U.S. dollar-backed token, placing Trump’s crypto venture among industry giants such as Tether and USDC. Rich Teo’s involvement and Trump’s commitment to cryptocurrencies suggest a strong possibility that the debut of stablecoins could have an impact on Bitcoin and broader market trends.
Following former President Donald Trump’s recent announcement about the launch of the World Liberty Financial cryptocurrency platform, a previous CNF update announced that Trump’s cryptocurrency initiative, World Liberty Financial, will launch a USD-backed stablecoin. It has been revealed that the company is reportedly planning to introduce . Following recent token launches, this move aligns World Liberty with companies like PayPal, Coinbase, and Robinhood that are also getting into stablecoins.
As stated by Fortune Crypto:
Building a stablecoin requires more than just hiring a single expert. That requires significant capital, the need to navigate regulatory and legal complexities, and the patience to compete with established giants like Tether and USDC.
Stablecoin projects that are still in development are focused on security before market release. Rich Teo, co-founder of Paxos and a prominent figure in the stablecoin space, joined World Liberty earlier this month to lead the company’s stablecoins and payments division.
Stablecoin debut and Bitcoin price
Creating a stablecoin is resource-intensive, requiring large amounts of capital and having to navigate complex regulatory frameworks, especially in competition with established giants like Tether and USDC. The stability of these tokens relies on secure collateralization with fiat currencies, as evidenced by the failure of alternatives like the collapse of Terra in 2022.
If the stablecoin project is successful, it could bring significant benefits to the Trump family. Tether, the leading stablecoin, recently reported profits of $5.2 billion for the first half of 2024, indicating strong market potential. World Liberty Financial’s governance token WLFI, launched in early September, allows users to vote on projects, but it generates no income and remains non-transferable.
Initially, the project aimed to raise $300 million from over 100,000 accredited investors, but has so far secured $14 million, with only a fraction of the tokens sold. .
As the first former president to enter the crypto market, this move could impact the price of Bitcoin. Previously, President Trump’s use of Bitcoin in public, such as buying hamburgers with BTC, had an impact on the market, as reported by CNF.
At the time of writing, Bitcoin (BTC) is trading at $69,804.37, up 2.67% over the past day and up 4.03% over the past week, according to CoinMarketCap.
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