BitGo to Custody Reserves for World Liberty Financial’s USD1 Stablecoin
Former Binance CEO Changpeng Zhao announced the launch of a new stablecoin called USD1, welcoming it to the BNB Chain. The smart contract for USD1 was deployed 20 days ago.
World Liberty Financial clarified that USD1 is not currently tradable and issued warnings about potential scams.
Key details about USD1 include:
- Minting on Ethereum and BNB Smart Chain.
- 100% backed by short-term US government treasuries, US dollar deposits, and cash equivalents.
- Custodied by BitGo, enhancing its credibility as an institutional-grade asset.
WLFI recently raised $550 million in token sales, establishing partnerships with notable blockchain protocols such as Ondo Finance and Aave. However, the project has faced criticism regarding its token swap strategies.
The involvement of Wintermute remains unclear, pending further information from the team.