- World Liberty Financial’s planned stablecoin aims to establish a secure U.S. dollar-backed token, positioning Trump’s crypto venture among industry giants like Tether and USDC.
- Rich Teo’s involvement and Trump’s crypto engagement signal strong potential, with the stablecoin debut possibly impacting Bitcoin and broader market trends.
Following former President Donald Trump’s recent announcement on the World Liberty Financial crypto platform launch, a previous CNF update revealed that World Liberty Financial, Trump’s cryptocurrency initiative, is reportedly planning to introduce a U.S. dollar-backed stablecoin. Following its recent token launch, this move would align World Liberty with firms like PayPal, Coinbase, and Robinhood, which have also ventured into stablecoins.
As stated in Fortune Crypto:
Building a stablecoin requires more than hiring a single expert. It demands significant capital, navigation through regulatory and legal complexities, and the endurance to compete with established giants like Tether and USDC.
The stablecoin project, still in development, emphasizes security before its market release. Rich Teo, co-founder of Paxos and a notable figure in the stablecoin sector, joined World Liberty earlier this month to lead the stablecoin and payments divisions.
Stablecoin Debut and Bitcoin Price
Creating a stablecoin is resource-intensive, requiring substantial capital and navigating complex regulatory frameworks, especially in competition with established giants like Tether and USDC. Stability for these tokens relies on secure collateralization with fiat currency, as demonstrated by the failures of alternatives like Terra’s collapse in 2022.
If successful, the stablecoin project could become highly profitable for the Trump family. Tether, the top stablecoin, recently reported $5.2 billion in profits for the first half of 2024, indicating strong market potential. Launched in early September, World Liberty Financial’s governance token, WLFI, allows users to vote on the project but does not yield income and remains nontransferable.
Initially aiming to raise $300 million from over 100,000 accredited investors, the project has so far secured $14 million, with only a small portion of tokens sold.
As the first former President to enter the crypto market, this development could influence Bitcoin’s price. Previously, Trump’s public use of Bitcoin, such as buying burgers with BTC, impacted the market as CNF reported.
At the time of writing, according to CoinMarketCap, Bitcoin (BTC) is trading at $69,804.37, with a 2.67% increase in the past day and a 4.03% increase over the past week.
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Source: https://www.crypto-news-flash.com/trumps-crypto-project-prepares-for-u-s-dollar-stablecoin-debut-report/?utm_source=rss&utm_medium=rss&utm_campaign=trumps-crypto-project-prepares-for-u-s-dollar-stablecoin-debut-report