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Trump-Linked WLFI Issues $128 Million USD1 Stablecoins on BNB Chain

World Liberty Financial Inc. (WLFI), a company reportedly linked to the family of former U.S. President Donald Trump, minted $128.07 million worth of USD1 stablecoins on April 14. The majority of these tokens—almost 90%—were issued on the BNB Chain, with the remainder deployed on Ethereum. This strategic decision highlights the growing appeal of BNB Chain for stablecoin projects.

USD1 Launches on PancakeSwap

Alongside the token issuance, USD1 established a trading pool on PancakeSwap, a decentralized exchange built on the BNB Chain. This pool currently holds $19 million in assets, contributing to USD1’s total value locked (TVL) of $30 million across both BNB and Ethereum networks. TVL represents third-party holdings in the stablecoin, underscoring its initial market adoption.

BNB Chain’s Statement on USD1

In response to inquiries, BNB Chain clarified that it is neither affiliated with nor directly involved in USD1’s issuance. However, the blockchain ecosystem acknowledged that USD1 is likely to benefit from BNB Chain’s robust liquidity and infrastructure.

“BNB Chain does not issue or own USD1. As a decentralized blockchain ecosystem, our mission is to onboard the next billion users to Web3, and the launch of USD1 is a great step in expanding stablecoin use cases within the ecosystem.”

BNB Chain emphasized its openness to all stablecoins, citing its speed, scalability, and cost-efficiency as key advantages. With block times of 3 seconds, transaction speeds of up to 5,000 per second, and fees as low as $0.03, the chain offers an attractive environment for stablecoin projects. Additionally, Ethereum Virtual Machine (EVM) compatibility ensures seamless deployment of Ethereum-based tokens.

BNB Chain’s DeFi Ecosystem and Security Features

The BNB Chain has a vibrant DeFi ecosystem supported by over 1.3 million daily active users. It also integrates security features like AvengerDAO and DappBay’s Red Alarm, which help users identify and avoid potential scams and exploits. These measures aim to protect users and ensure the integrity of the ecosystem.

Why BNB Chain Appeals to Stablecoin Projects

Stablecoin issuers often choose BNB Chain due to its access to liquidity and an engaged community. Tokens launched on the chain can benefit from integration into Binance’s ecosystem, including improved accessibility through centralized exchanges.

Addressing Scams and Risks

BNB Chain recognizes the importance of user education in combating scams. It encourages users to conduct thorough due diligence (DYOR) before interacting with any token or project. Tools like Red Alarm provide real-time risk assessments for decentralized applications (DApps) and smart contracts, helping users make informed decisions.

“At BNB Chain, we believe user education is the first line of defense. Resources like AvengerDAO and Red Alarm are available to help users identify risks and avoid malicious actors.”

Future of Stablecoins in Financial Markets

While BNB Chain declined to comment on specific legislative developments, the platform remains committed to supporting stablecoin innovation. Stablecoins are increasingly seen as transformative tools for savings and payments, although they face scrutiny in some regions, such as Europe, where policymakers view them as potential disruptors to traditional financial systems.

Overall, the launch of USD1 on BNB Chain is a notable development within the cryptocurrency space, demonstrating the chain’s appeal for stablecoin projects and its ability to support large-scale token issuance.

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