Bitget and DWF Labs Team Up to Boost USD1 Stablecoin
Bitget just announced a partnership with DWF Labs, aiming to shore up liquidity for USD1—the stablecoin launched by World Liberty Financial, which has ties to the Trump family. The deal could be a big move for both sides, but it’s not without its risks.
DWF Labs, a market maker with a mixed reputation, will handle the liquidity side of things. Bitget, meanwhile, brings its platform and user base to the table. If it works out, the collaboration could help USD1 overcome one of its biggest hurdles: thin trading volume.
Why USD1 Needs the Help
USD1 hit the market just three months ago but has already climbed to become the fifth-largest stablecoin. That’s impressive, but there’s a catch—liquidity is tight. Most of the supply is held by a small number of players, and past attempts to fix the problem haven’t gone well.
Bitget’s involvement might change that. The exchange has been pushing deeper into stablecoins lately, adding Ripple’s RLUSD last month and teasing a yield-bearing product not long before that. This partnership feels like the next logical step.
Gracy Chen, Bitget’s CEO, framed the deal as a way to “ensure consistent liquidity” for traders, especially in volatile markets. She’s also hinted before that Bitget could eye the U.S. market if regulations ease up—something that might happen if Trump wins the election. USD1, with its American ties, could be a useful foothold.
The Skeptics Aren’t Convinced
Not everyone’s optimistic, though. DWF Labs has been tangled in controversies, and its previous work with World Liberty Financial drew criticism. Some industry watchers think Bitget might be risking its reputation by jumping into bed with them.
Then again, Bitget doesn’t have much to lose. The exchange has been clear about wanting a bigger slice of the stablecoin market and a path into the U.S. If this deal pays off, it could kill two birds with one stone.
But partnerships like this are always a gamble. Better liquidity for USD1? Sure, that’s possible. A smoother ride into the U.S. market? Maybe. But with DWF’s track record, there’s also a chance this backfires.
For now, Bitget seems willing to take that risk.
