World Liberty Financial, the crypto enterprise launched by former President Donald Trump, is reportedly planning to develop its own stablecoin intended to function a stand-in for the US dollar.
World Liberty’s Stablecoin Ambitions
In line with a Fortune report, the World Liberty team is currently focused on ensuring the financial product’s safety before its market introduction.
This entails navigating a landscape stuffed with regulatory uncertainties and legal challenges, which might be daunting, especially when competing against established players like Tether’s USDT and Circle’s USDC stablecoins.
Earlier this month, World Liberty announced the hiring of Wealthy Teo, co-founder of Paxos – stablecoin issuer liable for the US dollar-backed Paxos Standard Token (PAX) – to steer its stablecoin and payments initiatives, consistent with recently unveiled plans for the Trump project.
Trump’s Crypto Project Challenges Ahead Of Stablecoin Launch
Historically, some protocols have attempted to sidestep traditional collateralization methods using various crypto innovations, but these efforts have often led to failure.
Fortune highlights a notable example of those challenges with the collapse of Terraform Labs in 2022, which resulted in significant financial losses across the market and increased legal scrutiny from authorities around the globe for its founder, Do Kwon, who’s currently awaiting possible extradition from Montenegro to the US.
Despite these challenges, the report notes that there may be considerable profit potential if Trump’s World Liberty can successfully launch its stablecoin. Tether’s USDT, for instance, reported a considerable profit of $5.2 billion in the primary half of 2024 alone, highlighting the lucrative nature of this market segment.
In a bid to secure funding for its initiatives, the Trump family enterprise recently whitelisted over 100,000 accredited investors, aiming to boost $300 million during its initial sale. Nonetheless, it has fallen significantly wanting that focus on, managing to boost only $14 million and selling a mere 4.7% of the available tokens.
Featured image from Business Insider, chart from TradingView.com