Trump-Backed Crypto Venture Launches USD1 Stablecoin on KuCoin — A Platform Banned in the U.S.

Former President Donald Trump's crypto venture has launched its USD-pegged stablecoin, USD1, on KuCoin, a global cryptocurrency exchange that was banned from operating in the U.S.

Former President Donald Trump’s crypto venture has launched its USD-pegged stablecoin, USD1, on KuCoin, a global cryptocurrency exchange that was banned from operating in the U.S. and fined $300 million earlier this year for violating anti-money laundering laws.

The move, reported by Unchained Capital, marks a bold—and controversial—step for World Liberty Financial, the DeFi platform Trump supports and reportedly controls 60% of through an LLC managed with his three sons. The USD1 stablecoin debuted on May 21, just months after KuCoin admitted to operating an unlicensed money-transmitting business in the United States.

"President Trump is compliant with all conflict-of-interest rules," said White House Press Secretary Karoline Leavitt, responding to questions raised by Forbes. She dismissed the coverage as part of “years of lies and false accusations.”

KuCoin, headquartered in Seychelles, had been in talks with World Liberty Financial to list the stablecoin on its platform after observing “strong demand for new projects and coins in certain regions,” a company spokesperson explained. Despite its U.S. ban, KuCoin remains one of the most active global exchanges, particularly for altcoins and emerging projects.

However, the partnership has already attracted scrutiny, especially given that KuCoin’s cofounders agreed to step down and face deferred prosecution under U.S. Department of Justice terms. The exchange is also restricted from servicing U.S. users for at least two years.

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According to legal experts, listing a politically backed stablecoin on a sanctioned exchange could raise significant ethical and regulatory concerns. But supporters argue that it’s a strategic workaround to introduce USD1 to high-growth markets abroad, especially as Trump faces re-election and crypto policy is a hot topic.

This venture adds a new layer of complexity to Trump’s increasing entanglement with digital assets and global finance, especially in the midst of his re-election campaign.