What is USD1 (USD1)?
USD1 is a fiat-backed stablecoin pegged 1:1 to the US dollar, issued by World Liberty Financial Inc. Launched in March 2025, USD1 competes with established stablecoins like USDT and USDC by offering multi-chain support and institutional-grade custody through BitGo Trust Company.
Key Facts
What is USD1?
USD1 is a fiat-backed stablecoin pegged 1:1 to the US dollar, issued by World Liberty Financial Inc. Each USD1 token is backed by US Treasuries, US dollar deposits, and cash equivalents held in reserve by BitGo Trust Company, a qualified custodian.
USD1 is deployed across multiple blockchains including Ethereum, BNB Chain, Tron, Solana, and Aptos. This multi-chain design allows users to transfer USD1 on the network that best fits their needs in terms of speed, cost, and ecosystem access.
Unlike algorithmic or crypto-backed stablecoins, USD1 maintains its peg through direct fiat reserves. For every USD1 in circulation, an equivalent value is held in short-term US Treasuries and cash equivalents.
Reserve holdings are subject to independent attestation to provide transparency to token holders.
Who Created USD1? A Brief History
World Liberty Financial
USD1 was created by World Liberty Financial Inc., the same company that launched the WLFI governance token in October 2024. The company was co-founded by Zak Folkman and Chase Herro, with Donald Trump Jr. and Eric Trump serving as advisors.
World Liberty Financial entered the stablecoin market to complement its DeFi lending protocol with a native dollar-pegged asset.
The Launch of USD1
USD1 launched in March 2025, initially on Ethereum and BNB Chain. The stablecoin quickly gained traction, expanding to Tron, Solana, and Aptos within months. BitGo Trust Company was selected as the custodian for USD1 reserves, providing institutional-grade security and regulatory compliance.
Key Milestones
- • 2024: World Liberty Financial launches WLFI governance token, raising over 00 million
- • March 2025: USD1 stablecoin launches on Ethereum and BNB Chain
- • April 2025: USD1 expands to Tron, Solana, and Aptos; market cap surpasses billion
- • Mid 2025: USD1 market cap reaches approximately billion; listed on major exchanges
How USD1 Works
USD1 operates as a fiat-backed stablecoin with a straightforward reserve model. Each token is backed 1:1 by US dollar-denominated assets held by a qualified custodian.
Reserve Backing
USD1 reserves consist of short-term US Treasuries, US dollar deposits at regulated financial institutions, and cash equivalents. These assets are chosen for their liquidity and stability, ensuring that USD1 can be redeemed for at any time.
Reserve composition is subject to independent attestation, with reports published periodically to verify that outstanding USD1 tokens are fully backed.
Minting and Redemption
Authorized participants can mint new USD1 by depositing US dollars with World Liberty Financial. Conversely, USD1 can be redeemed for US dollars by burning tokens. This mint/redeem mechanism maintains the 1:1 peg to the dollar.
On the secondary market, users buy and sell USD1 on exchanges where supply and demand typically keep the price very close to .
Multi-Chain Architecture
USD1 is deployed as a native token on five blockchains: Ethereum (ERC-20), BNB Chain (BEP-20), Tron (TRC-20), Solana (SPL), and Aptos (Aptos token). Each deployment is a distinct token contract, and cross-chain transfers are facilitated through supported bridges and exchanges.
This multi-chain approach lets users hold and transfer USD1 on whichever network offers the best combination of transaction speed, fees, and ecosystem integration for their use case.
BitGo Trust Custody
BitGo Trust Company serves as the qualified custodian for USD1 reserves. BitGo is a regulated trust company that provides institutional-grade security including multi-signature wallets, insurance coverage, and regulatory compliance.
By using a third-party qualified custodian, USD1 separates the issuer (World Liberty Financial) from the reserve management, adding an additional layer of trust and accountability.
USD1 vs USDT, USDC & DAI
The stablecoin market features several established players. Here is how USD1 compares to the three largest stablecoins:
| Feature | USD1 | USDT | USDC | DAI |
|---|---|---|---|---|
| Issuer | World Liberty Financial | Tether Limited | Circle | MakerDAO (decentralized) |
| Backing | US Treasuries, cash, cash equivalents | Cash, Treasuries, loans, other assets | Cash, short-term US Treasuries | Over-collateralized crypto assets |
| Custodian | BitGo Trust Company | Multiple (undisclosed details) | BNY Mellon, others | N/A (smart contracts) |
| Chains | Ethereum, BNB, Tron, Solana, Aptos | Ethereum, Tron, Solana, + 10 more | Ethereum, Solana, Base, + 10 more | Ethereum (+ bridged) |
| Market Cap | ~$5B | ~$140B | ~$45B | ~$5B |
| Governance | World Liberty Financial (centralized) | Tether Limited (centralized) | Circle (centralized) | MKR token holders (decentralized) |
USD1 occupies a similar position to USDT and USDC as a centralized, fiat-backed stablecoin. Its key differentiator is the BitGo Trust custody arrangement and multi-chain support from launch. DAI remains the main decentralized alternative.
For most users, the choice between stablecoins depends on exchange availability, chain preference, and trust in the issuer.
Why USD1 Has Value
USD1 maintains its value through a direct 1:1 backing with US dollar-denominated assets. Each token can be redeemed for $1 worth of reserves, creating a price floor that market participants enforce through arbitrage.
The stablecoin's value proposition includes institutional-grade custody via BitGo Trust, multi-chain availability across five major networks, and the backing of a high-profile issuer.
These factors drive adoption among traders who need a stable dollar-denominated asset for trading pairs, settlement, and cross-chain transfers.
However, the value of any stablecoin depends on trust in the issuer and custodian. USD1 is newer than USDT or USDC and has a shorter track record. Users should monitor reserve attestation reports and the regulatory environment around the issuer.
How to Buy USD1
USD1 is available on several major cryptocurrency exchanges. Since it is a stablecoin pegged to $1, the focus when buying is on minimizing fees rather than timing the market.
1Compare providers
Use coinvela to compare USD1 fees and availability across exchanges. Look for platforms with low trading fees and your preferred deposit method.
2Create an account
Sign up with your chosen exchange and complete identity verification (KYC). Most exchanges require a government-issued ID and proof of address.
3Fund your account
Deposit funds via bank transfer, credit card, or another cryptocurrency. Bank transfers typically have the lowest fees.
4Buy USD1
Navigate to the USD1 trading pair and place your order. For stablecoins, a market order at $1 is usually sufficient. You can also swap other stablecoins (USDT, USDC) for USD1 on supported exchanges.
5Withdraw to Your Wallet
For long-term storage, withdraw your USD1 to a personal wallet. Choose the blockchain network that offers the lowest withdrawal fees from your exchange. Ethereum fees tend to be higher, while Tron or BNB Chain often cost just a few cents.
Next step: Compare exchange fees and features to find the best price.
How to Store USD1
Wallet Types for USD1
Since USD1 exists on multiple blockchains, you need a wallet that supports the specific chain your tokens are on:
- • Software Wallets: MetaMask (Ethereum/BNB Chain), Phantom (Solana), TronLink (Tron), or multi-chain wallets like Trust Wallet that support all USD1 networks.
- • Hardware Wallets: Ledger and Trezor support Ethereum and BNB Chain USD1 tokens. Ledger also supports Solana and Tron.
- • Exchange Wallets: Convenient for active trading, but you rely on the exchange's security. Not recommended for large holdings.
Hardware Wallets
For the highest security, use a hardware wallet like Ledger or Trezor. These devices store your private keys offline, protecting your USD1 from online threats. Hardware wallets support Ethereum and BNB Chain tokens natively, with Ledger also supporting Solana and Tron.
Protect Your Seed Phrase
Your wallet's seed phrase (recovery phrase) is the master key to your funds. Write it down on paper and store it in a secure location. Never share it online, store it digitally, or enter it on any website.
If you lose your seed phrase and your device is lost or damaged, your USD1 tokens will be permanently inaccessible.
How to Use USD1 (USD1)
Cross-Border Transfers
USD1 enables fast, low-cost dollar-denominated transfers across borders. By choosing a low-fee chain like Tron or BNB Chain, you can send USD1 anywhere in the world for a fraction of the cost of traditional wire transfers, with settlement in minutes rather than days.
DeFi Protocols
USD1 can be used in decentralized finance protocols for lending, borrowing, and liquidity provision. As adoption grows, more DeFi platforms are integrating USD1 as a supported stablecoin alongside USDT and USDC.
Trading Pairs
On exchanges that list USD1, you can use it as a base trading pair for buying and selling other cryptocurrencies. This is similar to how USDT and USDC are used as quote currencies on major exchanges.
Risks
As with any stablecoin, USD1 carries risks including: issuer risk (World Liberty Financial's ability to maintain reserves), regulatory risk (stablecoin regulations are evolving globally), and custodian risk (reliance on BitGo Trust).
The token is also relatively new, with a shorter track record than USDT or USDC. Never hold more in any single stablecoin than you can afford to lose.
Notable People Behind USD1
USD1 is a product of World Liberty Financial Inc. Key figures include:
Zak Folkman
Co-founder of World Liberty Financial. Folkman leads the business and operational side of the project, including the development and launch of USD1.
Chase Herro
Co-founder of World Liberty Financial and a serial entrepreneur in the crypto space. Herro handles technical strategy and product development for both the WLFI protocol and USD1 stablecoin.
Donald Trump Jr. & Eric Trump
Serve as advisors and public advocates for World Liberty Financial. Their involvement has brought significant public attention to both WLFI and USD1, though they are not involved in day-to-day operations.
Regulation Overview for USD1
Stablecoin Regulation Landscape
Stablecoin regulation is a fast-evolving area worldwide. Governments are increasingly focused on ensuring that stablecoins are adequately backed, transparently managed, and compliant with anti-money laundering (AML) and know-your-customer (KYC) requirements.
USD1, as a fiat-backed stablecoin, falls directly under these emerging regulatory frameworks.
Regulation by Country
The regulatory treatment of USD1 varies by jurisdiction:
United States: The US is developing comprehensive stablecoin legislation. Currently, stablecoin issuers must comply with state-level money transmitter laws and federal AML requirements. Pending legislation may establish federal oversight standards for reserve requirements and custodial arrangements.
Canada: Canada regulates crypto assets through the Canadian Securities Administrators (CSA) and FINTRAC. Stablecoins referenced to fiat currencies may be classified as securities or derivatives in certain contexts. Canadian exchanges listing USD1 must be registered with provincial regulators.
Australia: AUSTRAC regulates digital currency exchanges in Australia. Stablecoins are treated as digital assets for AML/CTF purposes. The Australian government has proposed a licensing framework for crypto asset service providers that would apply to stablecoin issuers and distributors.
Regulations continue to evolve. Always check the latest requirements in your jurisdiction before buying or using USD1.
Political Context
USD1's issuer, World Liberty Financial, has connections to the Trump family. This creates a unique regulatory dynamic: on one hand, the association brings attention and potential policy influence; on the other, it attracts increased regulatory scrutiny.
Investors should consider this political context when evaluating USD1 and monitor any conflicts of interest between the issuer's leadership and evolving stablecoin policy.
FAQs About USD1 (USD1)
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