Introduction to USD1 Stablecoin
In a significant development for cryptocurrency accessibility, Alchemy Pay has announced the incorporation of USD1—a stablecoin pegged to the U.S. dollar and developed by World Liberty Financial (WLFI). This recent integration, revealed through a press release on May 30, enables users from 173 countries to acquire USD1 using popular fiat payment methods, including Visa, Mastercard, Apple Pay, Google Pay, various mobile wallets, and local bank transfers.
About USD1
USD1, which was introduced in March 2023, is currently under the custodianship of BitGo Trust Company, a regulated entity in the United States. Since its launch, the stablecoin has quickly ascended to become the seventh largest in the market by capitalization, boasting a valuation of $2.15 billion, according to data from DeFiLlama. Its design ensures that it maintains a 1:1 peg to the U.S. dollar, adequately backed by U.S. Treasury securities.
Alchemy Pay’s Integration and Goals
Alchemy Pay’s expansive payment infrastructure facilitates over 300 fiat currency channels and is backed by several regulatory licenses, including nine U.S. Money Transmitter Licenses. This move to integrate USD1 is aimed at enhancing access to dollar-denominated digital assets for both individual consumers and institutional players.
WLFI’s Vision and Market Activity
WLFI, the parent company behind USD1, curates a decentralized finance platform influenced by the economic philosophies of former President Donald Trump, with aspirations to broaden public engagement in DeFi through legally compliant tools. The launch of USD1 aligns with this vision, providing practical applications for users.
Trade volumes for USD1 have been promising, with major cryptocurrency exchanges such as Binance, Bitget, KuCoin, MEXC, and HTX listing it shortly after its debut. Moreover, WLFI aims to broaden USD1’s application in the DeFi space by partnering with Chainlink (LINK) to enhance its cross-chain capabilities.
Political Scrutiny and Institutional Interest
However, despite its rapid uptake, USD1 has faced political attention. On May 23, three U.S. senators proposed amendments to the GENIUS Act that noted potential conflicts due to WLFI’s ties to Trump. They also called for transparency regarding WLFI’s dealings with the Trump administration.
In light of these concerns, WLFI’s legal representatives assert that the project strictly follows U.S. financial regulations. Despite the political scrutiny, there remains strong institutional interest in USD1, exemplified by Abu Dhabi-based MGX‘s recent decision to utilize the stablecoin as part of a $2 billion investment into Binance—an endorsement of USD1’s practicality in the crypto market.
