Trump-backed WLFI Plans USD1 Stablecoin Payments for Online Businesses
Executives from World Liberty Financial (WLFI), a crypto venture backed by former US President Donald Trump's family, revealed at Token2049 in Singapore plans to enable USD1 stablecoin payments for major online businesses. Their stablecoin, issued via BitGo and backed by cash and US government money market funds, is set for wider adoption. WLFI aims to assume issuance directly after obtaining a conditional national trust bank charter. Despite criticism from Senator Elizabeth Warren and other lawmakers, the company is moving forward with a commercial rollout planned this quarter.
Partnership with Mesh and Expansion Plans
At the Token2049 panel focused on stablecoins, WLFI executives, including CEO Zach Witkoff and co-founder Zak Folkman, joined Mesh CEO Bam Azizi to announce a partnership enabling holders of WLFI's USD1 stablecoin to make payments across Mesh’s merchant network. This rollout is scheduled for the current quarter.
Folkman indicated that beyond their own World Liberty app, they plan to deploy the same technology through some of the largest Web2 companies, significantly expanding the stablecoin’s usability in online business transactions.
WLFI Stablecoin and Its Backing
WLFI’s stablecoin is designed to maintain a value of exactly $1, backed by cash, US government money market funds, and other cash equivalents. The issuance is currently managed by BitGo.
As of the article's publication, CoinGecko reported the stablecoin’s market capitalization at approximately $4.45 billion, underlining its significance as a stable digital currency aimed for widespread online payment use.
National Trust Bank Charter and Self-Issuance Plans
In August, the US Office of the Comptroller of the Currency (OCC) conditionally approved WLFI’s establishment of a national trust bank. This bank is intended to issue dollar-backed stablecoins and provide custody for digital assets. According to Witkoff, this will allow WLFI to assume direct responsibility for issuing their USD1 stablecoin rather than relying on BitGo.
This move marks a significant step towards greater autonomy and scaling of WLFI’s stablecoin issuance under their own regulatory trust charter.
Political Criticism and OCC’s Response
The OCC’s approval drew criticism from Senator Elizabeth Warren, who raised concerns about potential conflicts of interest due to WLFI’s ties to the Trump family. In response, Warren and other senators introduced the Ending Presidential Corruption in Banking Act to address such issues.
The OCC maintained that its review process complied fully with statutory requirements and ethical obligations. Witkoff highlighted during the panel that WLFI secured the charter despite attacks from mainstream media and political figures.
Why it matters
This news is significant for advancing crypto payments in online commerce, as WLFI plans to integrate its USD1 stablecoin with major online businesses, expanding practical usage of digital currencies in everyday transactions. Obtaining a national banking charter enables WLFI to independently manage token issuance, reducing reliance on third parties. Meanwhile, the political criticism highlights ongoing debates about cryptocurrency regulation and potential conflicts of interest involving influential market participants. Successful deployment of this project could mark a key milestone in integrating stablecoins into the global financial infrastructure.
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