Trump’s USD1 Stablecoin: A Financial strategy Beyond Crypto?
Mateusz Kara, CEO of Ari10, believes President Donald Trump’s support for stablecoins is more about financial strategy than blockchain innovation.The launch of USD1, a dollar-pegged stablecoin, might seem like a step towards mainstream crypto adoption. Though, Kara sees it as part of a larger U.S. plan to reshape global debt markets.
According to Kara,the real goal is to create a new market for U.S. bonds. To issue stablecoins like USD1, platforms must buy U.S. dollars and short-term treasuries. This creates a decentralized channel for global bond distribution, making it easier for the U.S.to borrow at lower costs.
USD1, launched by World Liberty Financial, is backed by U.S. treasuries and runs on Ethereum and Binance Smart Chain. It joins a growing stablecoin market, with competitors like Tether and Circle. Treasury Secretary Scott Bessent sees stablecoins as crucial for maintaining the U.S. dollar’s dominance.
For Europe,Kara warns that the launch of USD1 signals the need to strengthen euro-based stablecoin infrastructure. He emphasizes the importance of regulatory progress, like the EU’s MiCA framework, to ensure a competitive and secure environment for stablecoin innovation.
Ultimately, USD1 may be less about crypto utility and more about extending the dollar’s reach globally. Europe’s response will determine its role in the evolving digital financial system.
