Donald Trump’s cryptocurrency project, World Liberty Financial, plans to issue its own stablecoin.
The project has reportedly raised $14 million to develop and launch a USD-pegged token. World Liberty Financial is currently working on ways to make this product safe for the market.
Earlier this month, World Liberty Financial announced that Paxos co-founder Rich Teo will lead the project’s stablecoin. Paxos powers the stablecoins Pax Dollar (USDP) and PayPal USD (PYUSD), which were launched just a few weeks ago.
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World Liberty Financial describes itself as “a movement that helps secure the future of the US dollar in a digital world without succumbing to central control of CBDCs.”
The project brought in $220 million in WLFI token sales within the first hour of launch. As of this writing, 956.23 million tokens have been sold and 19.044 billion remain.
According to recent reports, the number of stablecoin transactions has recently seen a record surge. Stablecoin liquidity soared to an all-time high of $169 billion late last month, reflecting 31% growth since the beginning of the year.
Donald Trump’s World Liberty Financial hits $220 million in sales within the first hour
More than 700 million Trump WLFI tokens have been sold, with 19 billion remaining
However, launching a new stablecoin requires a partnership with an exchange such as Coinbase or Binance. Both exchanges face SEC lawsuits, which could put them in a better position if Trump is re-elected, although Trump has vowed to fire Gary Gensler if elected.
Tether, the stablecoin market leader, has partnered with custodian Cantor Fitzgerald. Kantar CEO Howard Lutnick will co-chair the Trump transition team.
Tether’s USDT maintains its leading position, with its market capitalization increasing by $28 billion since the beginning of the year to nearly $120 billion, accounting for 71% of the market.
Approximately $190 billion is traded every day in Tether, the world’s most traded cryptocurrency. In the first half of 2024 alone, Tether generated a staggering $5.2 billion in revenue and revealed record profits.
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Tether’s dominance and profit growth come amid increased scrutiny of its role in global finance. US government agencies are investigating links between USDT and national security threats, despite denials
However, the Wall Street Journal reports that the US federal government is investigating Tether for violating sanctions and anti-money laundering laws.
Specifically, Manhattan prosecutors are investigating whether Tether was used to support illegal activities such as drug trafficking, terrorism, and hacking.
