USD1 Stablecoin Explained: How It Works & Who Backs It
The post USD1 Stablecoin Explained: How It Works & Who Backs It appeared on BitcoinEthereumNews.com. World Liberty Financial’s USD1 has gone from a March 2025 launch announcement to the fourth-largest stablecoin in the world in roughly fifteen months, overtaking PayPal’s PYUSD and Sky’s DAI along the way. Its rise has been driven less by retail adoption than by a handful of enormous institutional deals — most notably a $2 billion settlement between Abu Dhabi-based MGX and Binance that was paid entirely in USD1 — and by the fact that the project sits inside a company co-founded by the Trump family. Here’s what USD1 actually is, how it works, and what to weigh before using it. Key Takeaways USD1 is a US dollar-pegged stablecoin issued by World Liberty Financial (WLFI) and custodied by BitGo Trust Company under a South Dakota trust charter Reserves consist of cash, short-term US Treasury bills, and government money market funds, verified through monthly AICPA-standard attestations and a l