With the impending U.S. presidential election just days away, reports indicate that World Liberty Financial (WLF), the cryptocurrency venture associated with former President Donald Trump, is getting ready to launch a stablecoin tied to the U.S. dollar.
Sources familiar with the situation suggest that although the stablecoin is still in the development phase, its release might face delays.
Insights shared with Decrypt suggest that the team is placing a high priority on security measures and adherence to regulations before rolling out the stablecoin to the public.
Notably, WLF recently appointed Rich Teo, a co-founder of Paxos, a stablecoin issuer, which hints that the move towards a stablecoin had been under consideration for a while.
Trump’s WLFI Coin Debut
This latest initiative follows the earlier introduction of the WLFI token. Initially, the project targeted more than 100,000 accredited investors with ambitious aims to raise $300 million through the initial token offering.
However, as reported by CryptoCrypto, the project fell short of its goals, managing to secure only $14 million with just 4.7% of the total tokens sold.
Nevertheless, this setback did not deter WLF from pursuing its objectives. In a recent governance proposal, the project outlined plans to create a new Aave v3 (AAVE) platform on the Ethereum mainnet, with a focus on stablecoin liquidity.
The proposal also includes a revenue-sharing model to expand Aave’s user base and incentivize new participants in the DeFi sector.
Large Investors Betting on Trump’s Victory
Amid these recent developments, data from Lookonchain indicates that significant investors are placing substantial bets on Trump’s potential success in the 2024 U.S. presidential election through the prediction platform Polymarket.
A notable whale (0x94a428cfa4f84b264e01f70d93d02bc96cb36356) recently invested $1 million USDC, adding to the $5 million already committed to shares favoring Trump’s election win.
Similarly, another prominent investor (0xd235973291b2b75ff4070e9c0b01728c520b0f29) reportedly withdrew over $2 million USDC from Binance to place pro-Trump wagers, bringing the total investment to $7.22 million.
Election Prediction Markets: Trump vs. Harris
According to data from Polymarket, Trump currently holds a 66.1% chance of winning the upcoming election. In contrast, Vice President Kamala Harris trails behind with a 34.0% chance of winning.
With the potential entry of a Trump-associated stablecoin into the market, the financial industry may witness further intersections between political forces and digital currencies as World Liberty Financial navigates the complex regulatory environment.