Trump-backed World Liberty Launches USD1 Stablecoin and TWAP

Published: 2025-09-02 00:12:22 |

World Liberty, the Trump-backed finance platform, has minted hundreds of millions in its USD1 stablecoin and launched a TWAP (time-weighted average price) service on Ethereum and Solana. World Liberty claims to be a major on-chain liquidity provider. This shift could challenge traditional centralized exchanges. However, analysts warn that World Liberty’s control over large USD1 reserves may steer funding into Trump-family-related memecoins and new crypto sectors. In the short term, traders benefit from increased liquidity and market activity. In the long run, centralization risk may erode asset ownership and transaction privacy for DeFi users. Market observers anticipate that regulators could formalize World Liberty’s dominant role in late 2025 or early 2026, bolstering its on-chain influence instead of curbing it. Investors are advised to exploit the current liquidity window but remain cautious of concentration risk. Historical parallels with centralized stablecoin issuers suggest that central control can lead to sudden policy shifts and transparency concerns. The rise of USD1 and the TWAP service marks a pivotal moment in crypto liquidity dynamics, with significant implications for memecoin cycles, on-chain capital markets, and AI-driven projects.

Bullish

The news is bullish for crypto traders because World Liberty’s USD1 stablecoin and TWAP service inject substantial on-chain liquidity into Ethereum and Solana ecosystems. Increased liquidity typically lowers slippage and supports higher trading volumes, which can drive short-term price rallies. Historical parallels include the launch of major stablecoins like USDC, which bolstered DeFi growth and led to increased user activity. However, the report also flags centralization risks and potential regulatory moves. While regulators may formalize World Liberty’s market role, in the near term this institutional backing reassures traders and may attract more capital. On balance, the immediate effect is a bullish boost to market stability and trading opportunities, though long-term dynamics will depend on governance and decentralization safeguards.