Trump-affiliated stablecoin slips as WLFI claims it is facing a “coordinated attack.”

USD1, the dollar-pegged stablecoin issued by World Liberty Financial — a crypto project closely tied to U.S. President Donald Trump’s family — briefly slipped below its $1 peg on Monday amid what the team described as a “coordinated attack.”

According to data from CoinGecko, the token fell to a low of $0.994, about 0.6% beneath its intended dollar anchor. It later recovered but continued to trade slightly below par at around $0.998.

In a post on X, developers behind USD1 claimed that several co-founder accounts had been compromised, influencers were allegedly paid to spread fear, and traders opened short positions against the protocol’s native WLFI token in an effort to trigger panic and profit from volatility.

“It didn’t work,” the team said, crediting USD1’s redemption mechanism — which allows holders to exchange tokens 1:1 for U.S. dollars — for helping the peg hold.

USD1 is issued in partnership with crypto custodian BitGo and ranks among the larger dollar-backed stablecoins. The token is backed one-to-one by short-term U.S. Treasuries, dollar deposits and other cash equivalents. Reserve attestations are published monthly and signed by consulting firm Crowe, according to BitGo.

With a market capitalization of roughly $5 billion, USD1 remains smaller than dominant stablecoins such as Tether’s USDT and Circle’s USDC.