In a move that’s sparked both political and crypto-world attention, World Liberty Financial Inc. (WLFI)—a firm reportedly connected to the Trump family—minted $128.07 million worth of USD1 stablecoins on April 14. The majority of these tokens were issued on BNB Chain, a leading decentralized blockchain network initially incubated by Binance.
BNB Chain as Primary Host for USD1
Nearly 90% of the USD1 supply resides on BNB Smart Chain (BSC), with the remainder minted on Ethereum. In addition, a liquidity pool for USD1 was launched on PancakeSwap—BNB’s top decentralized exchange—where over $19 million in assets are currently held. The total value locked (TVL) across both blockchains has surpassed $30 million.
Despite the scale of deployment, BNB Chain was quick to clarify that it has no direct affiliation with WLFI or USD1. “BNB Chain does not issue or own USD1,” said a BNB Chain spokesperson in response to crypto.news. “As a decentralized blockchain, our mission is to onboard the next billion users to Web3, and stablecoins like USD1 support that vision.”
Why USD1 Chose BNB Chain
While BNB Chain wasn’t involved in any negotiations with WLFI, the spokesperson noted that its network provides compelling advantages for stablecoin issuers. These include:
- 3-second block times
- Up to 5,000 transactions per second
- Fees below $0.03 per transaction
- Ethereum Virtual Machine (EVM) compatibility
- Integration with major centralized exchanges
- A user base of over 1.3 million daily active users
These features, combined with a thriving DeFi ecosystem and enhanced security via tools like AvengerDAO and DappBay’s Red Alarm, make BSC an attractive environment for projects like USD1.
Scams and the Need for Caution
The conversation also touched on a previous USD1 launch that turned out to be a scam. Former Binance CEO Changpeng Zhao (CZ) had issued a warning in March when another USD1 token appeared on BNB Chain but was non-tradable. In response, BNB Chain emphasized its focus on user education and safety. “We encourage users to always DYOR [Do Your Own Research] and utilize tools like Red Alarm to assess risks before interacting with any token,” the spokesperson added.
Regulatory Landscape and Stablecoin Future
When asked about regulation, including the U.S. Genius Act and European skepticism toward stablecoins, BNB Chain chose not to comment. However, they redirected users to their blog for insights on the future of DeFi and stablecoins in payments and savings markets.
Final Thoughts
The quiet yet large-scale launch of USD1 marks a significant moment for the intersection of politics, crypto, and decentralized finance. While BNB Chain distances itself from direct involvement, its infrastructure and reach continue to make it a central pillar for new digital assets entering the blockchain economy.
