In a whirlwind rise that’s captured the attention of the crypto world, USD1, a stablecoin backed by former U.S. President Donald Trump, has vaulted to the position of the seventh-largest stablecoin globally. Since its debut just two months ago, USD1’s market cap has soared to an impressive $2.2 billion, trailing major players like Tether’s USDT and USDC, but outpacing competitors such as First Digital USD and PayPal USD, according to CoinGecko data.
A Meteoric Ascent
Launched in early March by World Liberty Financial (WLFI), a company with Trump’s endorsement, USD1 hit the ground running. Initially issued with a modest $3.5 million supply, its growth has been nothing short of explosive. The BNB Chain, backed by Binance, has been the primary engine driving USD1’s issuance, with a staggering $2.1 billion of its supply circulating on this network. By contrast, its Ethereum-based version lags significantly, with a mere $14.5 million in circulation, according to BscScan and Etherscan.
The recent surge in USD1’s market cap—an eye-popping 1,540% increase in late April—came just before Eric Trump revealed that Abu Dhabi-based MGX plans to channel $2 billion into Binance using USD1. This announcement seems to have injected fresh momentum into the stablecoin, as noted by market analysts. For more details, see World Liberty’s Stablecoin Will Be Used to Close MGX’s $2B Binance Investment: Eric Trump.
Exchanges Clamor for USD1
Centralized exchanges (CEXs) have been quick to catch on to the USD1 wave. HTX, previously known as Huobi and linked with Tron founder Justin Sun, was among the first to list the stablecoin. The exchange announced zero-fee withdrawals for USD1 on the BEP-20 network on May 6, further boosting the coin’s accessibility. Yet, most trading activity remains centered on decentralized platforms like PancakeSwap and Uniswap.
Despite its American roots, WLFI’s funding appears to be tapping into a global investor base. Reports suggest that up to 90% of its investors are from outside the United States, hailing from regions such as Europe, Asia, and Latin America. This international interest underscores a broader trend: the global appetite for stablecoins that transcends borders and regulatory frameworks.
A Trumpian Vision
USD1’s rise aligns with Trump’s digital currency agenda, outlined in his January 2025 executive order advocating for American leadership in digital financial technologies. While some have speculated about the nature of the relationship between Trump, WLFI, and Binance, both parties have consistently denied any formal ties, dismissing such reports as speculative at best. Eric Trump’s recent comments on the necessity for banks to adopt crypto or face extinction provide further context to this vision, as discussed in Banks Must Adopt Crypto or ‘Be Extinct in 10 Years,’ Eric Trump Says.
Observers are keenly watching how USD1 will carve out its niche in the crowded stablecoin market. As Trump continues to champion stablecoins, the potential for USD1 to influence digital finance landscapes remains significant. Yet, questions linger about its longevity and ability to sustain growth amid fierce competition and evolving regulatory climates.
Looking ahead, the market will be watching to see if USD1 can maintain its rapid ascent. Will it secure a foothold among the top stablecoins, or will it face the same volatility that has plagued other digital currencies? Only time will tell, but for now, USD1 is a name on the rise, making waves in the ever-dynamic world of cryptocurrency.
Source
This article is based on: Trump-backed USD1 is now the seventh-largest stablecoin worldwide
Further Reading
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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.
