President Donald Trump’s endeavors in the world of cryptocurrency continue to grow with recent announcements regarding a new stablecoin backed by the U.S. dollar and investment funds aimed at digital assets. These developments reflect the unconventional manner in which the president has embraced cryptocurrency projects that could potentially enhance his financial standing during his presidency.
World Liberty Financial, a cryptocurrency initiative co-founded by Trump last year, disclosed plans on Tuesday to introduce USD1, a stablecoin maintaining a 1-to-1 value ratio with the U.S. dollar. Stablecoins represent a rapidly expanding segment within the cryptocurrency industry as they are typically anchored to a government-issued currency like the dollar or gold. This makes them more suited for commercial transactions compared to the volatile nature of digital assets such as bitcoin or other cryptocurrencies.
Zach Witkoff, a co-founder of World Liberty Financial, stated, “We’re offering a digital dollar stablecoin that sovereign investors and major institutions can confidently integrate into their strategies for seamless, secure cross-border transactions.” The announcement by World Liberty emerges at a time when Congress, with backing from the White House, is actively working to enact legislation to facilitate the operation and expansion of stablecoin companies within the United States.
Together with his father, Steve Witkoff, who serves as Trump’s special diplomatic envoy, Zach Witkoff played a significant role in establishing World Liberty Financial in collaboration with Trump and his sons last year. As specified on the company’s website, a Trump-affiliated company holds the “right to receive 75% of the net protocol revenues” from World Liberty Financial, post expenses.
Additionally, on Monday, Trump Media & Technology Group Corp. (TMTG) announced a partnership with the cryptocurrency trading platform Crypto.com to introduce exchange-traded funds (ETFs) for investors. Scheduled for a release later this year, these funds will encompass a “unique ETF basket of cryptocurrencies” along with “securities with a Made in America focus spanning diverse industries such as energy,” according to TMTG’s announcement.
As the parent company of Truth Social, Trump’s social media platform, TMTG sees him as its major stakeholder, although he holds no decision-making authority. Nonetheless, Trump’s ownership stake caused a spike in the company’s stock price following the latest announcement.
These recent developments are part of an expanding array of crypto projects that Trump has endorsed, actions which critics argue are inappropriate for someone in public office. Just before assuming the presidency, Trump launched his own meme coin, which initially experienced a significant price surge, followed by a prolonged decline. Often starting as a joke, meme coins are highly speculative and lack substantive value.
Trump has also promoted online platforms selling crypto-related products like the “Crypto President” watch, priced at $100,000. Having once been skeptical of cryptocurrencies, Trump has now embraced digital assets, pledging to establish the U.S. as the “world capital” for cryptocurrencies. His early initiatives to advance the crypto industry reflect the heavy financial support he received from this sector during last year’s election, marking it as a formidable political power.
Prior to assuming the presidency, Trump’s family business put forth a voluntary ethics agreement which bars the president from “day-to-day” decision-making in his companies and restricts financial data shared with him. However, this agreement does not prevent him from promoting crypto-related products, which he did on social media by lauding his meme coin, writing, “I LOVE $TRUMP — SO COOL!!! The Greatest of them all!!!!!!!!!!!!!!!!” This post temporarily led to a surge in the meme coin’s price.