Trump’s Crypto Project Plans To Issue Stablecoin: Report

Donald Trump’s latest foray into cryptocurrency, World Liberty Financial (WLF), is said to be preparing to issue its own stablecoin as part of an ambitious expansion plan.

The news comes despite the project’s recent sale of its native token, WLFI, only netting about $14 million from just over 16,000 buyers.

WLF Stablecoin in the works

According to a Decrypt report citing sources familiar with the matter, the planned stablecoin is still in development as the WLF team aims to ensure rigorous security features before it hits the market.

The potential release date of the product is still unknown. However, the project has reportedly named Rich Teo, co-founder of blockchain infrastructure platform Paxos, as its lead for stablecoins and payments, a move analysts say signals World Liberty Financial’s commitment to the stablecoin innovation. When asked for a response, neither Teo nor WLF would comment on the alleged development.

If it comes to fruition, a stable currency could greatly improve the company’s financial base. The issuers of these products typically generate profits by reinvesting the deposits in yield-producing assets such as US Treasuries. For example, Tether, the owner of the world’s largest stablecoin, USDT, recently reported a record profit of $5.2 billion in the first half of 2024.

However, the digital asset, with a current market value of $120.2 billion, has raised questions about its booking strategy. Its parent company has revealed that it owns 82,454 BTC and 48.3 tons of gold, valued at over $9 billion. The company’s CEO, Paolo Ardoino, also clarified that the cache includes about $100 billion in US Treasury bonds.

WILFI Token Sales and Regulatory Concerns

While WLF is expected to funnel substantial funds into its proposed stablecoin to make this a reality, sales of its native WLFI token have been quite slow. The latest figures from the Dune chain show that it has only managed to collect $14.3 million so far, with more than 80% of that figure received on the first day. That’s just a fraction of the project’s $300 million goal.

In addition, there are concerns regarding the regulatory environment for stablecoins in the United States. The Securities and Exchange Commission (SEC), deeply unpopular in crypto circles, has recently scrutinized several major digital asset companies, including Binance, over issues related to stablecoins and potential violations of US securities laws.

Although some charges were eventually dismissed, the uncertainty created by these actions could pose challenges for World Liberty. However, many believe that a potential return to the White House in November of Donald Trump could work in the project’s favor.

The Republican presidential candidate has emerged as a staunch crypto ally in recent months. Some believe his administration could directly affect the legal landscape of cryptocurrencies, including stablecoins, which could inadvertently benefit their business interests.

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