A crypto company with ties to Donald Trump has launched a USD1 stablecoin, which it says will be used to back bonuses for Ultimate Fighting Championship events. The move marks another intersection between the former president's business interests and the crypto industry, and it drew a sharp response from the Democratic National Committee.
The stablecoin and UFC bonuses
The company, whose name was not disclosed in the announcement, described the stablecoin as pegged one-to-one to the US dollar. It will be deployed to fund bonuses for fighters in the UFC, a sports organization that has increasingly embraced crypto sponsorships. The exact structure of the bonus program and how fighters will receive the stablecoin were not detailed.
DNC criticism
A spokesperson for the Democratic National Committee criticized the launch, calling it an opportunity to use the power of the presidency to enrich Trump and his family. The statement did not elaborate on specific concerns, but it reflects ongoing scrutiny of Trump's business ventures since leaving office. Trump has not publicly commented on the stablecoin.
The stablecoin is expected to begin backing UFC bonuses in the coming weeks. Regulatory oversight of the token remains unclear, as stablecoin legislation has stalled in Congress. The DNC's criticism could amplify calls for greater transparency around Trump's crypto dealings.
