Donald Trump’s latest foray into cryptocurrencies, World Liberty Financial (WLF), is said to be preparing to issue its own stablecoin as part of an ambitious expansion plan.
This news comes despite the project’s recent sale of its native token WLFI only securing around $14 million from just over 16,000 buyers.
WLF stablecoin in development
According to a Decrypt report citing sources familiar with the matter, the planned stablecoin remains in development, with the WLF team aiming to ensure strict safety features before going to market.
The expected release date for this product is not yet known. However, the project has reportedly appointed Rich Teo, co-founder of blockchain infrastructure platform Paxos, as head of stablecoins and payments, a move that analysts say could be linked to World Liberty Financial’s It says it demonstrates a commitment to tablecoin innovation. When asked for a response, neither Teo nor WLF would comment on the alleged development.
If that happens, stablecoins could significantly strengthen the company’s financial foundation. Issuers of such products typically generate profits by reinvesting deposits in higher-yielding assets such as U.S. Treasury bills. For example, Tether, the owner of the world’s largest stablecoin USDT, recently reported a record $5.2 billion profit for the first half of 2024.
However, the digital asset, which currently has a market value of $120.2 billion, has raised questions about its preparation strategy. Its parent company revealed that it holds 82,454 BTC and 48.3 tons of gold, worth over $9 billion. CEO Paolo Ardoino also revealed that cash includes about $100 billion worth of U.S. Treasuries.
WILFI token sale and regulatory concerns
WLF is expected to put a lot of money into the proposed stablecoin to make that happen, but sales of the native WLFI token have been fairly slow. According to Dune’s latest on-chain data, only $14.3 million has been raised so far, with over 80% of that amount received on the first day. This is just a fraction of the project’s $300 million goal.
Additionally, there are concerns about the regulatory environment for stablecoins in the United States. The Securities and Exchange Commission (SEC), highly unpopular in the crypto industry, has recently scrutinized several major digital asset companies, including Binance, over issues related to stablecoins and possible violations of U.S. securities laws. are.
Although some charges were ultimately dismissed, the uncertainty such actions created could pose a challenge to freedom worldwide. But many feel that Donald Trump’s possible return to the White House in November could favor the project.
The Republican presidential candidate has been touting himself as a steadfast ally of cryptocurrencies in recent months. Some believe his administration could directly influence the legal status of cryptocurrencies, including stablecoins, which could inadvertently benefit his business interests.
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