USD1 Trading Volume Defended Amid Cronyism Allegations

Zach Witkoff, CEO of World Liberty Financial, has defended his company's stablecoin USD1 against allegations of cronyism. Critics argue that USD1 is being used to buy influence with US President Donald Trump, given his family's significant stake in the company.

In response, Witkoff pointed to the token's impressive trading volume, which reached $1.42 billion over a 24-hour period, with a market value of around $4.03 billion and a turnover ratio exceeding 35%. He stated that USD1 has grown due to institutional trust in its operation, with confidence at an enterprise scale deserving federal supervision.

The controversy stems from the Office of the Comptroller of the Currency's (OCC) issuance of a preliminary conditional approval for World Liberty Trust Co. to operate as a national trust bank. This would grant the company the ability to issue and redeem USD1 directly, hold reserves backing the token, and offer custody services without relying on external partners.

Ethics watchdogs and academics have expressed skepticism regarding the demand for USD1, citing its proximity to the White House as a primary reason for holding it. They also note that other stablecoins like Tether and Circle's USDC have significantly higher circulation numbers.