In a bold projection shaking up the crypto landscape, Blockstreet’s Kyle Klemmer anticipates that by the end of President Trump’s second term, USD1 will have emerged as the preeminent stablecoin globally. This forecast, unveiled September 1, 2025, sets the stage for a potential reshuffling of power in the stablecoin market, with USD1 poised to eclipse current heavyweights like Tether and USDC by 2028.
The Rise of USD1
USD1’s ascent isn’t merely a flash in the pan, according to Klemmer, who cites its strategic backing and robust framework as key differentiators. “The synergy between innovative blockchain technology and strong political backing creates an ecosystem ripe for dominance,” he indicated. Unlike its predecessors, USD1 is crafted to harness regulatory foresight, aiming to address longstanding issues like transparency and stability that have plagued older counterparts. This follows a pattern of political involvement in crypto, as seen in our recent coverage of the Trump-Backed World Liberty Token, which could have significant impacts on retail investors.
The backing by former President Donald Trump adds a layer of intrigue and, perhaps, skepticism. Critics argue that political affiliations could introduce volatility into what is traditionally a refuge of stability. Yet, supporters claim that the political heft behind USD1 could spur regulatory clarity, a move that might entice institutional investors wary of regulatory ambiguity.
“We’re seeing a paradigm shift,” said crypto analyst Jenna McCoy. “USD1’s trajectory suggests it might not just compete but redefine what stablecoins mean in the modern economy.”
Current Market Dynamics
As of today, Tether and USDC command significant portions of the stablecoin market cap, yet cracks in their armor have appeared. Questions about reserve transparency have dogged Tether, while USDC faces challenges adapting to swiftly changing regulatory landscapes. It’s within these gaps that USD1 appears to be carving its niche.
The recent months have seen USD1’s adoption rates creep upwards, with several major exchanges listing it alongside traditional fiat currencies. “Exchanges are the gatekeepers,” remarked digital asset strategist Victor Huang. “Their buy-in is crucial, and USD1 is making commendable inroads there.”
Here’s the catch: while USD1 is gaining traction, its success isn’t set in stone. Stablecoin markets are notoriously fickle, and the introduction of central bank digital currencies (CBDCs) might upend existing dynamics. However, Klemmer’s confidence lies in USD1’s ability to adapt and integrate these changes, rather than be blindsided by them. This adaptability is reminiscent of other Trump-backed ventures in the crypto space, such as the Trump-Backed Bitcoin Miner American Bitcoin, which is targeting a Nasdaq debut.
Historical Context and Future Outlook
The stablecoin saga has been tumultuous over the years. From Tether’s early controversies to USDC’s rise as a compliant alternative, the market has been in constant flux. USD1’s proposed entry could continue this trend, offering a new model for what a stablecoin can achieve under the right conditions.
But what does that mean for the average crypto enthusiast? If Klemmer’s vision holds true, USD1 could become a staple in both individual and institutional portfolios by 2028, offering a blend of security and innovation. Yet, the road to 2028 is fraught with potential hurdles. Regulatory shifts, technological advancements, and market sentiment will all play roles in determining USD1’s ultimate place in the crypto hierarchy.
As the digital currency realm continues to evolve, the next three years will be pivotal for USD1. Will it fulfill Klemmer’s prophecy and rise to the top? Or will unforeseen challenges derail its path to supremacy? The answers remain to be seen, but one thing is certain: the stablecoin race just got a lot more interesting.
Source
This article is based on: Trump-Backed USD1 to Supplant Tether, USDC as Top Stablecoin by 2028: Blockstreet
Further Reading
Deepen your understanding with these related articles:
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- Startup M0 Raises $40M Series B as VCs Pile Into Stablecoins: Report
- Binance stablecoin inflows top $1.6B, signaling traders positioning for rebound
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
