Introduction
World Liberty Financial (WLFI), a company associated with Donald Trump’s family, has recently issued a significant volume of stablecoins dubbed USD1, amounting to approximately $128 million. The tokens were minted on April 14 and are primarily based on the BNB blockchain, with nearly 90% of them created on the BNB network, while the remainder is on Ethereum.
Implications for Decentralized Finance
This move is a significant step within the decentralized finance sector, as USD1 has also established a trading pool on PancakeSwap—a decentralized exchange on the BNB network—currently holding around $19 million in assets. In total, USD1 boasts a combined value of $30 million across BNB and Ethereum, indicating robust third-party holdings in the stablecoin market.
BNB Chain’s Clarification
Despite this association with Donald Trump’s family, BNB Chain, which was originally established by Binance, clarified that it has no formal ties to the issuance of USD1. In a Q&A with crypto.news, a spokesperson for BNB Chain noted that while they support the stablecoin’s launch on their blockchain due to its liquidity advantages, they do not control WLFI or USD1.
Advantages of BNB Chain
The spokesperson also emphasized BNB’s capabilities, highlighting its speed—offering transaction times of three seconds and handling up to 5,000 transactions per second—as crucial advantages for stablecoins on the network. Transaction fees remain extremely low, making it a cost-effective choice for users, with fees typically under $0.03.
Community and Security Protocols
BNB Chain has a strong community, boasting over 1.3 million daily active users, which serves to enhance liquidity and adoption. Furthermore, the network implements security protocols such as AvengerDAO and DappBay’s Red Alarm to safeguard its users from potential threats. The company is also taking steps to educate users on identifying possible scams, advocating for thorough research before engaging with new tokens.
Future Outlook
However, when questioned about potential regulation impacts, such as the Genius Act or sentiments from European legislators wary of stablecoins as financial threats, BNB Chain declined to comment, redirecting inquiries to their blog for insights into the role of stablecoins in shaping future payment landscapes.
