Bitget Makes Big Move to Improve Trump-Linked USD1 Stablecoin

Bitget announced a partnership with DWF Labs today, aiming to provide institutional-grade liquidity to USD1, World Liberty Financials stablecoin.

DWF Labs will provide the liquidity, while Bitget can offer its reputable platform and capital efficiency. If successful, this partnership can fulfill several of Bitgets goals.

Bitgets USD1 Initiative

Bitget, one of the most popular crypto exchanges, has recently been increasing its presence in the stablecoin market. Last month, it listed Ripples RLUSD to expand its stablecoin offerings, announcing a similar yield-bearing stable asset certificate shortly beforehand.

Today, Bitget continues this trend by teaming up with DWF Labs to boost USD1.

USD1 was launched three months ago by the Trump Familys World Liberty Financial and quickly became the fifth-largest stablecoin in the market. The president is also keen on advancing US-based stablecoins to increase dollar dominance. USD1 may contribute to that plan.

One problem, however, is the assets serious lack of liquidity. The supply of USD1 is highly concentrated, and recent partnerships to ameliorate this ended up backfiring.

Potentially, this is where Bitget and DWF Labs can help USD1 out. DWF Labs, a market maker and investment firm, can provide the liquidity, whereas Bitget will contribute its infrastructure and user base:

“Stablecoins power trading at Bitget, its vital we work with partners that bring support to stronger liquidity on the platform. Partnering with DWF Labs helps us ensure our users get consistent, two-way liquidity across market conditions, making institutional trading smoother, cost-efficient and fast,” Gracy Chen, CEO of Bitget, said in a press release.

After Trumps election, Chen claimed that Bitget may enter the US market under friendlier regulatory conditions. For this goal, USD1 might provide a good entrepôt.

The two firms plan to increase the stablecoin‘s liquidity and utility on spot and derivatives markets, using Bitget’s reputation and capital efficiency to ensure USD1s long-term growth.

Still, a few industry experts have expressed skepticism about the exchanges choice of business partner. DWF Labs has been involved in several major scandals, and its recent partnership with World Liberty attracted more flak.

Bitget could provide a lot of key advantages to USD1, but unintended controversies might hamper its entry to the US markets.

Ultimately, Bitget stands to gain a lot from this USD1 initiative. The exchange has been interested in expanding to two areas: the stablecoin sector and US crypto markets. Partnering with DWF Labs might make substantial progress in both endeavors.