Summary
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World Liberty Financial (WLFI), backed by the Trump family, is testing its new stablecoin USD1 on the BNB Chain, with early tests involving Wintermute and cross-chain transfers, aiming for a secure and reliable stablecoin product.
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WLFI’s broader strategy is to bridge Traditional Finance (TradFi) and DeFi by offering a platform that caters to institutional TradFi needs, especially regarding tokenized real-world assets (RWAs), and providing a regulated, KYC-compliant environment that traditional DeFi governance models lack.
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WLFI is developing a suite of DeFi products, including a lending/borrowing market and an RWA protocol, managed through its internal governance rather than a DAO, with upcoming product launches and partnerships with Chainlink and Aave to enhance its offerings.
World Liberty Financial (WLFI), a decentralized finance (DeFi) initiative endorsed by former President Donald Trump and his sons, has reportedly conducted preliminary tests of its newly developed stablecoin, named USD1, on the BNB Chain.
This information was gleaned from on-chain data monitored by the analytics platform Lookonchain.
Observations from the blockchain suggest that Wintermute’s publicly identifiable digital wallet played a role in these trials.
According to insights from crypto analyst INVEST Y, further corroborated by Binance‘s co-founder Changpeng “CZ” Zhao, this wallet engaged in a series of experimental transactions involving the USD1 stablecoin.
These tests purportedly included cross-chain interoperability assessments between the Ethereum and BNB Chain networks.
As reported by Decrypt in the prior October, WLFI had indicated that the development of a native stablecoin was underway.
Sources familiar with the project stated that the development team’s foremost concern was to ensure the highest levels of security and reliability for the stablecoin before its public launch.
WLFI Co-founder Teases Upcoming Product Releases
The stablecoin testing phase occurred after WLFI successfully concluded a token sale earlier in the month, raising $550 million.
Following this successful fundraising round, Zak Folkman, WLFI’s co-founder, suggested in a statement that these sales were merely the beginning of their broader strategic ambitions.
In a recent discussion with Sergey Nazarov, co-founder of Chainlink, Folkman hinted at forthcoming “major announcements” slated for release in the upcoming weeks.
The project has established partnerships with several key blockchain protocols, including Chainlink and Aave, to enrich its DeFi service offerings and incorporate decentralized Oracle functionalities.
“Regarding our development efforts, I would categorize our work into three primary product lines that are currently under construction and refinement. Of these, two are essentially finalized and ready for market introduction,” Folkman stated.
While Folkman remained tight-lipped concerning the nature of the first “ready” product, he revealed that the other two are designed as a smart contract-driven lending and borrowing platform and a distinct protocol concentrating on real-world assets (RWAs).
“Currently, our focus is on the final stages of preparation, ensuring a strategically phased and logical rollout of our complete product suite in a manner that is both impactful and well-reasoned,” he elaborated.
In a departure from conventional DeFi lending models that typically rely on decentralized autonomous organizations (DAOs) for governance, World Liberty Financial intends to manage its lending marketplace through its own internal governance structure.
This centralized approach grants the company direct oversight and the capacity to customize the platform to precisely cater to the specific requirements of its user base, particularly institutional actors from the traditional finance (TradFi) sector.
“If we consider traditional financial institutions, we see a considerable number that currently hold substantial quantities of tokenized assets,” Folkman explained.
“However, a key impediment is the absence of clear pathways to effectively utilize, deploy, or market these tokenized assets.”
World Liberty Financial’s stated objective is to overcome this obstacle by delivering a platform designed to seamlessly bridge TradFi assets into the expanding DeFi landscape.
This strategy includes plans to offer access to financial instruments presently unavailable within DeFi, such as money market accounts, commercial real estate investments, debt instruments, and securities.
Also Read: Trump-Linked World Liberty Financial Concludes $550 Million Token Sales
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