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Trump’s USD1 Stablecoin Eyes Trust Recovery in Crypto

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Trump made headlines again last week after World Liberty Financial announced the launch of USD1, its very own stablecoin. However, much anticipation surrounds just how successful the project will be. The launch of Trump’s meme coin at the beginning of the year resulted in billions of dollars in losses. Retail investors, in particular, have learned to be more cautious with Trump-backed endeavors. 

BeInCrypto spoke with nine industry experts to learn more about USD1 and what it needs to restore public confidence in investors disappointed by Trump’s previous crypto ventures. These representatives unanimously agreed that USD1’s success hinges on transparency, proper utility, and a distinct advantage over well-established competitors.

USD1’s Promise and Trump’s Crypto History

Last week, World Liberty Financial (WLF), a token project heavily affiliated with the Trump family, officially acknowledged that it had launched USD1, its very own stablecoin. To a certain degree, the announcement was unsurprising.

During the Digital Assets Summit the White House held at the beginning of March, Treasury Secretary Scott Bessent said that the Trump administration would use stablecoins to preserve the US dollar’s role as the world’s strongest reserve currency.

USD1 aims to do exactly this. The stablecoin will be pegged to the US dollar and supported by a reserve comprised of short-term US Treasury securities, dollar deposits, and other highly liquid assets.

“Trump is not simply issuing his stablecoin. He is legitimizing stablecoins in general to support the US dollar. If you go through his stablecoin legislation, it is essentially about increasing the dollarization by making the US dollar easier and safer to use and selling more dollars in the process. Every USD stablecoin in circulation means USD-denominated asset in a bank somewhere. Not in CNY or any other currency,” Tae Oh, Founder of Creditcoin, told BeInCrypto.

But Trump’s track record in crypto has been polluted by heavy losses for retail investors and reiterated accusations of conflicts of interest. While some welcome the idea of a sitting president backing the launch of a new stablecoin, others say that it sparks further cause for trouble.

Can USD1 Redeem Trump’s Crypto Reputation?

The crypto market went berzerk when Trump launched his meme coin two days before assuming office. Within a day of trading, the token reached a market capitalization of over $14.5 billion. 

But, since that moment, the meme coin has been in freefall, tainted by constant volatility and evidence of insider trading. According to Chainalysis, while early buyers were able to cash out $6.6 billion in profits, smaller traders have experienced collective losses of over $2 billion. 

TRUMP meme coin market capitalization since January launch.
TRUMP meme coin market capitalization since January launch. Source: CoinGecko

Meanwhile, the Trump family has made nearly $100 million from trading fees alone. 

WLF, the President’s decentralized finance (DeFi) experiment, largely failed to restore confidence in Trump-backed crypto projects. Reports quickly unveiled that the Trump family holds a 75% stake in the platform’s net revenue and a 60% stake in the holding company. 

Applying these percentages to WLF’s most recent token sale, Trump would have earned $400 million in revenue.

Now, WLF has launched USD1. Unlike meme coins, stablecoins offer investors a much higher degree of stability. Some industry leaders believe this could be Trump’s opportunity to redeem himself, while others remain doubtful. S, the pseudonymous community lead behind NEIRO, summarized it cleanly:

“If USD1 is structured well and managed transparently, it could help regain confidence, especially among newer users. But it won’t erase the impact of previous rug pulls and hype-driven projects. That healing process takes time and accountability,” he said, adding that “Authentic community engagement is now essential—it’s not enough to slap a famous name on a token.”

At the same time, the meme coin’s turbulent journey revealed Trump’s capacity to introduce newcomers to crypto, a lesson potentially applicable to USD1’s launch

Trump’s Meme Coin Impact on New Investors

TRUMP’s initial $14.5 billion market capitalization set the highest benchmark achieved by a meme coin backed by a public figure. Aside from that, according to a survey by NFTvening, 42% of TRUMP meme coin buyers were first-time crypto investors.

In other words, Trump’s meme coin project did wonders in exposing outsider investors to the cryptocurrency market. According to Oh, the same can be done with USD1– at least initially.

“The association with Trump is the strongest branding you can get in the current market. However, at the end of Trump’s term, the project needs to become disassociated from the President and more politically neutral,” he said.

Oh also added that Trump’s frequent project launches have demonstrated similarities. Though they haven’t necessarily filled a gap in the market, they have managed to onboard new users.

“I think Trump is showing us a pattern. He is legitimizing various types of cryptocurrency by issuing them himself or through his affiliate organizations. He started with memecoin and now on fiat-backed stablecoin. Is adoption the main objective of the projects? We shall see,” Oh said.

For Anthony Anzalone, CEO of XION, a Trump-backed stablecoin could create pathways for sustainable adoption compared to any meme coin.

“In the specific context of a stablecoin, Trump’s association likely provides advantages rather than disadvantages. Unlike speculative tokens, where celebrity involvement often signals short-term marketing over substance, stablecoins derive their value from stability, regulatory compliance, and institutional adoption – areas where political connections potentially confer meaningful benefits. The technical requirements and operational challenges of stablecoins are significantly different from speculative tokens, making this a more suitable venture for political backing,” Anzalone told BeInCrypto. 

However, market adoption won’t exclusively hinge on presidential backing.

Will Trump’s Name Help or Hurt USD1 Adoption?

While a Trump-endorsed stablecoin could greatly increase USD1 adoption, it could also have the opposite effect. 

“Trump’s polarizing presence could create skepticism, especially among those wary of political influence in financial products. While his involvement might appeal to his supporters, it risks alienating a broad portion of the market,” said Cathy Yoon, General Counsel at the Wormhole Foundation.

This risk is especially true when applied to users who believe that Trump has entered the crypto space exclusively for profit. 

“Trump’s main motivation is making money from this venture, so his involvement is certainly more likely to be a downside than an advantage. You know he’ll try everything to suck as much profit out of this venture as possible, and it could be at the expense of the end user,” Jean Rausis, Co-founder of SMARDEX, told BeInCrypto. 

The fact that WLF, a Trump-backed project associated with several conflicts of interest, launched USD1 does little to assuage skeptics about future risks. 

Conflicts of Interest and USD1 Transparency

Trump failed to prevent similar accusations of conflicts of interest by directly associating himself with the USD1 launch through WLF. 

“A conflict of interest arises when the current US President is also a key figure in World Liberty Financial. He will be closely monitored and face regulatory hurdles to ensure there is no manipulation of the financial system, but this alone could deter investors when there are highly competitive and much more mature products in that market,” Vivien Lin, Chief Product Officer at BingX, told BeInCrypto.

Suppose Trump wants to distance himself from the criticism his previous projects received. In that case, he will have to ensure that USD1 adheres to transparency mechanisms and regular audits—not only for public trust but also to ensure that the sitting President doesn’t break the law. 

“Transparency should be at the forefront of all communications, especially with Trump’s involvement as the US President and stakeholder in World Liberty Financial. This situation could violate the Constitution’s emoluments clause, which broadly refers to any advantage, profit, or gain received due to holding office. If violated, this could significantly hurt the public’s trust. Another aspect that should be considered is establishing safeguards against potential market manipulation, especially given WLFI’s history of large crypto purchases before important events to prevent market manipulation,” Lin added.

USD1’s success will also largely depend on its execution.

USD1’s Path in a Competitive Market

Stablecoins have existed since 2014 and are finding a permanent home in the broader market. According to the World Economic Forum, the current supply of stablecoins in circulation exceeds $208 billion.

Average supply of stablecoins in circulation.
Average supply of stablecoins in circulation. Source: World Economic Forum.

With a market capitalization approaching $144 billion, Tether (USDT) is today’s most dominant stablecoin. In second place comes Circle’s USDC, with a market capitalization of over $60 billion. Driven by their dollar peg and perceived inflation hedge, stablecoins have become highly popular, prompting increased stablecoin launches from banks and tech firms.

“The more we see responsible innovation that includes utility use cases– such as prudentially regulated stablecoins for global payment processing – the more crypto’s reputation will solidify and credibility will grow. I don’t think we need to rely or wait for one product such as USD1. The momentum has been building and will continue,” Beth Haddock, Global Policy Lead at Stablecoin Standard, told BeInCrypto.

USD1 must set itself apart to succeed in an already cutthroat market. 

“If USD1 lacks interoperability, has limited on/off-ramps, or fails to differentiate from incumbents like USDC or USDT, it risks being relegated to a niche use case. Ultimately, mainstream success will come down to execution, partnerships, and solving real user pain points—especially in markets where traditional financial access is limited or inefficient,” said Mouloukou Sanoh, CEO of MANSA.

According to Martins Benkitis, CEO of Gravity Team, catering to niche markets isn’t a bad idea. But in an already competitive field, it might not be enough.

“If it becomes a gateway for on-chain political donations or movement-aligned payments, it’s filling a niche. The question is whether that niche is big enough to sustain a stablecoin. Jury’s still out, but it’s an angle,” he said.

Inevitably, providing some utility that is not currently available will factor into USD1’s eventual success.

What Utility Will USD1 Offer?

What USD1 can offer the market boils down to what Trump has in store. Several details regarding its launch have yet to be released. 

Nonetheless, if executed properly, the stablecoin has the potential to offer a degree of stability and predictability that TRUMP’s meme coin was unable to deliver. It could also give the President the golden opportunity to restore the trust that he lost from his previous crypto ventures. 

If this is among Trump’s matters of concern for USD1, he will have to prioritize factors like transparency, security, and clear utility. These will be the aspects the public will be looking out for.

Disclaimer

Following the Trust Project guidelines, this feature article presents opinions and perspectives from industry experts or individuals. BeInCrypto is dedicated to transparent reporting, but the views expressed in this article do not necessarily reflect those of BeInCrypto or its staff. Readers should verify information independently and consult with a professional before making decisions based on this content. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.



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BNB Price Faces More Downside—Can Bulls Step In?

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Aayush Jindal, a luminary in the world of financial markets, whose expertise spans over 15 illustrious years in the realms of Forex and cryptocurrency trading. Renowned for his unparalleled proficiency in providing technical analysis, Aayush is a trusted advisor and senior market expert to investors worldwide, guiding them through the intricate landscapes of modern finance with his keen insights and astute chart analysis.

From a young age, Aayush exhibited a natural aptitude for deciphering complex systems and unraveling patterns. Fueled by an insatiable curiosity for understanding market dynamics, he embarked on a journey that would lead him to become one of the foremost authorities in the fields of Forex and crypto trading. With a meticulous eye for detail and an unwavering commitment to excellence, Aayush honed his craft over the years, mastering the art of technical analysis and chart interpretation.
As a software engineer, Aayush harnesses the power of technology to optimize trading strategies and develop innovative solutions for navigating the volatile waters of financial markets. His background in software engineering has equipped him with a unique skill set, enabling him to leverage cutting-edge tools and algorithms to gain a competitive edge in an ever-evolving landscape.

In addition to his roles in finance and technology, Aayush serves as the director of a prestigious IT company, where he spearheads initiatives aimed at driving digital innovation and transformation. Under his visionary leadership, the company has flourished, cementing its position as a leader in the tech industry and paving the way for groundbreaking advancements in software development and IT solutions.

Despite his demanding professional commitments, Aayush is a firm believer in the importance of work-life balance. An avid traveler and adventurer, he finds solace in exploring new destinations, immersing himself in different cultures, and forging lasting memories along the way. Whether he’s trekking through the Himalayas, diving in the azure waters of the Maldives, or experiencing the vibrant energy of bustling metropolises, Aayush embraces every opportunity to broaden his horizons and create unforgettable experiences.

Aayush’s journey to success is marked by a relentless pursuit of excellence and a steadfast commitment to continuous learning and growth. His academic achievements are a testament to his dedication and passion for excellence, having completed his software engineering with honors and excelling in every department.

At his core, Aayush is driven by a profound passion for analyzing markets and uncovering profitable opportunities amidst volatility. Whether he’s poring over price charts, identifying key support and resistance levels, or providing insightful analysis to his clients and followers, Aayush’s unwavering dedication to his craft sets him apart as a true industry leader and a beacon of inspiration to aspiring traders around the globe.

In a world where uncertainty reigns supreme, Aayush Jindal stands as a guiding light, illuminating the path to financial success with his unparalleled expertise, unwavering integrity, and boundless enthusiasm for the markets.



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VanEck Sets Stage for BNB ETF with Official Trust Filing

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Global investment management firm VanEck has officially registered a statutory trust in Delaware for Binance’s BNB (BNB) exchange-traded fund (ETF). 

This move marks the first attempt to launch a spot BNB ETF in the United States. It could potentially open new avenues for institutional and retail investors to gain exposure to the asset through a regulated investment vehicle.

VanEck Moves Forward with BNB ETF 

The trust was registered on March 31 under the name “VanEck BNB ETF” with filing number 10148820. It was recorded on Delaware’s official state website.

VanEck BNB ETF Filing
VanEck BNB ETF Filing. Source: State of Delaware Official Website

The proposed BNB ETF would track the price of BNB. It is the native cryptocurrency of the BNB Chain ecosystem, developed by the cryptocurrency exchange Binance.

As per the latest data, BNB ranks as the fifth-largest cryptocurrency by market capitalization at $87.1 billion. Despite its significant market position, both BNB’s price and the broader cryptocurrency market have faced some challenges recently.

Over the past month, the altcoin’s value has declined 2.2%. At the time of writing, BNB was trading at $598. This represented a 1.7% dip in the last 24 hours, according to data from BeInCrypto. 

BNB Price Performance
BNB Price Performance. Source: BeInCrypto

While the trust filing hasn’t yet led to a price uptick, the community remains optimistic about the prospects of BNB, especially with this new development.

“Send BNB to the moon now,” an analyst posted on X (formerly Twitter).

The filing comes just weeks after VanEck made a similar move for Avalanche (AVAX). On March 10, VanEck registered a trust for an AVAX-focused ETF. 

This was quickly followed by the filing of an S-1 registration statement with the US Securities and Exchange Commission (SEC). Given this precedent, a similar S-1 filing for a BNB ETF could follow soon.

“A big step toward bringing BNB to US institutional investors!” another analyst wrote.

Meanwhile, the industry has seen an influx of crypto fund applications at the SEC following the election of a pro-crypto administration. In fact, a recent survey revealed that 71% of ETF investors are bullish on crypto and plan to increase their allocations to cryptocurrency ETFs in the next 12 months. 

“Three-quarters of allocators expect to increase their investment in cryptocurrency-focused ETFs over the next 12 months, with demand highest in Asia (80%), and the US (76%), in contrast to Europe (59%),” the survey revealed.

This growing interest in crypto ETFs could drive further demand for assets like BNB, making the VanEck BNB ETF a potentially significant product in the market.

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.



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XRP Recovery Stalls—Are Bears Still In Control?

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XRP price started a fresh decline from the $2.20 zone. The price is now consolidating and might face hurdles near the $2.120 level.

  • XRP price started a fresh decline after it failed to clear the $2.20 resistance zone.
  • The price is now trading below $2.150 and the 100-hourly Simple Moving Average.
  • There is a connecting bearish trend line forming with resistance at $2.120 on the hourly chart of the XRP/USD pair (data source from Kraken).
  • The pair might extend losses if it fails to clear the $2.20 resistance zone.

XRP Price Faces Rejection

XRP price failed to continue higher above the $2.20 resistance zone and reacted to the downside, like Bitcoin and Ethereum. The price declined below the $2.150 and $2.120 levels.

The bears were able to push the price below the 50% Fib retracement level of the recovery wave from the $2.023 swing low to the $2.199 high. There is also a connecting bearish trend line forming with resistance at $2.120 on the hourly chart of the XRP/USD pair.

The price is now trading below $2.150 and the 100-hourly Simple Moving Average. However, the bulls are now active near the $2.10 support level. They are protecting the 61.8% Fib retracement level of the recovery wave from the $2.023 swing low to the $2.199 high.

XRP Price

On the upside, the price might face resistance near the $2.120 level and the trend line zone. The first major resistance is near the $2.150 level. The next resistance is $2.20. A clear move above the $2.20 resistance might send the price toward the $2.240 resistance. Any more gains might send the price toward the $2.2650 resistance or even $2.2880 in the near term. The next major hurdle for the bulls might be $2.320.

Another Decline?

If XRP fails to clear the $2.150 resistance zone, it could start another decline. Initial support on the downside is near the $2.10 level. The next major support is near the $2.0650 level.

If there is a downside break and a close below the $2.0650 level, the price might continue to decline toward the $2.020 support. The next major support sits near the $2.00 zone.

Technical Indicators

Hourly MACD – The MACD for XRP/USD is now gaining pace in the bearish zone.

Hourly RSI (Relative Strength Index) – The RSI for XRP/USD is now below the 50 level.

Major Support Levels – $2.10 and $2.050.

Major Resistance Levels – $2.120 and $2.20.



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