World Liberty Financial announced its partnership with Re7 Capital on Friday with the aim of expanding the use of its stablecoin on the Binance BNB Chain, as stated in a press release.
The innovation-focused segment of Re7 Capital, Re7 Labs, will utilize its “institutional-grade DeFi infrastructure and risk management expertise” to support World Liberty’s mission of proliferating the “adoption and usage” of USD1 on the BNB Chain, as mentioned in the joint statement.
World Liberty, a DeFi project backed by former President Donald Trump, launched its USD1 stablecoin in March. In May, the Abu Dhabi-based investment firm MGX used the nascent USD1 stablecoin to seal a $2 billion deal with Binance, one of the largest cryptocurrency trading platforms globally.
Despite the USD1 token, pegged to the U.S. dollar, currently boasting a market cap of $2.2 billion according to CoinMarketCap, its adoption beyond the deal has been relatively moderate given the growing interest in stablecoins within the U.S. financial system. The Trump administration is on the verge of approving legislation that is likely to accelerate the use of stablecoins in the U.S.
“Its selection for a $2 billion capital deployment initiative linked to MGX and Binance ecosystem strategies highlights the increasing importance of stablecoins in institutional digital finance,” stated World Liberty.
The market leader for stablecoins is currently Tether’s USDT, with approximately $158 billion worth of tokens in circulation, as per The Block’s Data Dashboard.
According to the joint statement, Re7 Labs, which was established over a year ago, manages more than “$550 million in DeFi vaults across leading protocols.”
“In collaboration with World Liberty, Euler, and BNB Chain, we’re promoting a model for stablecoin adoption that satisfies both crypto-native and institutional users’ expectations,” stated Evgeny Gokhberg, founder of Re7 Capital, about the partnership.
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