World Liberty Financial, the cryptocurrency company initiated by Donald J. Trump and his children, announced on Tuesday that he planned to sell a digital currency called Stablcoin, deepening the president’s financial ties with the cryptography while his administration relaxes the application of the industry.
The stablecoin would be known as USD1, the company wrote in a publication on social networks, without revealing when it would go on sale. Stablecoins, a popular form of cryptocurrency, are designed to maintain a constant value of $ 1, which makes them useful for many types of cryptographic transactions.
“Without games. Without tricks. Only real stability,” World Liberty published in his X account.
Stablecoin is the fourth digital currency that Trump and his commercial partners have marketed the public during the last year. World Liberty already offers a cryptocurrency called WLFI. This month, the company announced that it had sold $ 550 million of those digital currencies. A commercial entity linked to Mr. Trump receives a cut of 75 percent of sales.
Days before its inauguration, Trump also began selling a so -called Memecoin, a type of digital currency based on an online joke or a mascot of celebrities. Melania Trump put her own memory on the market that same weekend.
And in recent months, Trump has begun to incorporate cryptography into his social media firm, Trump Media & Technology Group, the social truth company. Trump Media announced this week that it would work with Crypto.com, a digital currency trade platform, to offer investment products linked to Crypto.
Trump’s aggressive incursions into the cryptography market have reached the same time that their administration relieves the application of cryptographic companies and goes back the regulations. His efforts to benefit from an industry that supervises is equivalent to a huge conflict of interest, practically unprecedented in the history of the United States, have said government ethics experts.
Stablecoin de World Liberty joins that messy knot of commercial conflicts. The Congress is considering the legislation to regulate the stable that could reach Mr. Trump’s desktop before the end of the year. In a speech at a cryptography conference this month, Trump requested “simple and common sense rules” for Stablecoins, saying that “they would expand the domain of the US dollar.”
In general, the stable are backed by assets that the currency issuer remains in reserve. Every time users want to redeem a stable, they can go to the sender and exchange the digital currency for the cash equivalent.
In Tuesday’s announcement, World Liberty said it would support the stablecoin using the United States Treasury Bonds in the short term, dollars in dollars and other cash equivalents.
“We are offering a digital dollar stable that sovereign investors and the main institutions can be integrated with confidence in their strategies for cross -border transactions without problems and safe,” said Zach Witkoff, one of the founders of World Liberty and son of Steve Witkoff, Mr. Trump’s envoy to the Middle East.
The emphasis on international payments increases the possibility that foreign governments or commercial entities can use the currency for Curry with the favor of Mr. Trump, said Corey Frayer, who worked on cryptographic policy in the stock exchange and values ​​commission under the Biden administration.
“There is a lot of opacity in this market and previous relationships with illicit finances,” Frayer said.
Once a cryptographic skeptic, Trump adopted digital coins in the campaign last year, promising to convert the United States into “the cryptographic capital of the planet.” The industry spent tens of millions of dollars to support Trump and finance Congress candidates who have spoken favorably about cryptography.
In September, Trump began world freedom along with his three children, Donald Jr., Eric and Barron, as well as Steve and Zach Witkoff. They trusted the daily operations of the business to two little -known entrepreneurs, Chase Herro and Zak Folkman, who practically do not have a history in the industry.
Initially, World Liberty promised to create a cryptographic platform that would allow users to borrow and provide in digital currencies. But so far, the company has not introduced any product apart from WLFI and Stablecoin.
In recent months, the company has embarked on a kind of shopping spree, gathering a cryptocurrency reserve that includes ether coins, as well as coins less known as Sui and Link.
In a recent panel, Herro said that World Liberty was creating a “strategic reserve” of Tokens. He did not explain the final objective of the reserve.
The idea had clear echoes of one of Mr. Trump’s initiatives in the White House: the creation of an American Bitcoin reserve, which announced in an executive order this month.
