Bitget today announced a partnership with DWF Labs with the aim of providing agency-grade liquidity to USD1, a Stablecoin from World Liberty Financial.
While DWF Labs provide liquidity, Bitget can provide a reputable platform and capital efficiency. If successful, this partnership can achieve some of Bitget’s goals.
Bitget’s USD1 initiative
One of the most popular crypto exchanges, Bitget has recently gained a presence in the Stablecoin market. Last month, we expanded our offering of Stablecoin by listing Ripple’s RLUSD, and announced in advance a stable asset certificate that supports similar yields.
Today, Bitget continues this trend by working with DWF Labs to increase USD1.
USD1 was launched three months ago by the Trump family’s World Liberty Financial and quickly became the fifth largest stubcoin on the market. The president is also keen to advance US-based stubcoin to increase control of the dollar. USD1 could contribute to that plan.
However, one problem is the serious lack of liquidity in assets. The supply of USD1 is very concentrated and the recent partnership to improve this has become a backfire.
Potentially, this is where Bitget Labs and DWF Labs can support USD1. While DWF Labs, a market maker and investment company, can provide liquidity, Bitet contributes to the infrastructure and user base.
“It is important to work with partners who support strengthening liquidity on the platform at Stablecoins Power Trading at Bitget. Our partnership with DWF Labs helps ensure consistent, bidirectional liquidity across market conditions and ensure institutional transactions are smoother, more cost-effective and faster,” said Bitget CEO.
After Trump’s election, Chen argued that Bitget could enter the US market under more friendly regulatory conditions. For this goal, USD1 may offer a good entrepreneur.
The two companies plan to use Bitget’s reputation and capital efficiency to increase Stablecoin’s liquidity and utility in the Stablecoin spot and derivatives market to ensure long-term growth of USD1.
Still, experts from several industry companies have expressed skepticism about the choice of business partners on the exchange. DWF Labs has been involved in several major scandals, and the recent partnership with World Liberty has attracted more FLAK.
Bitget could offer many important benefits to USD1, but unintended controversy could hinder entry into the US market.
In the end, Bitget will win much from this USD1 initiative. The exchange is interested in expanding into two areas: the Stablecoin sector and the US crypto market. Partnering with DWF Labs could significantly advance both efforts.
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