Looking at USD1's Success: Why This Trump-Backed Stablecoin is Booming

In just two months since its launch, USD1, the US dollar-backed stablecoin from World Liberty Financial (WLFI) backed by former President Donald Trump, has quickly risen to become the seventh-largest stablecoin in the world. 

The meteoric growth of USD1 is not only a testament to its appeal but also reflects the changing dynamics of the cryptocurrency market. Launched with a $3.5 million supply in early March, USD1 has expanded to a market capitalization of $2.2 billion at the time of writing. But what has driven this rapid success, and how is USD1 carving out its niche in a market dominated by giants like Tether and USDC?

Read also : World Liberty Financial (WLFI) Proposes USD1 Stablecoin Airdrop

USD1's Market Surge and Competitive Edge

USD1’s success can be attributed to several factors, starting with its rapid market capitalization growth. In just a few weeks, the coin surged by an impressive 1,540%, climbing from $128 million to $2.1 billion in late April 2025. 

This jump in value was fueled in part by strategic moves, including its partnership with the Abu Dhabi-based investment firm, MGX, which announced plans to use USD1 to invest $2 billion in Binance. This deal propelled the stablecoin to new heights, with centralized exchanges (CEXs) like HTX and decentralized exchanges (DEXs) like PancakeSwap and Uniswap beginning to list USD1.

Despite its rapid growth, USD1 still lags behind major stablecoins like Tether’s USDt and USD Coin (USDC), whose market caps are worth $149 billion and $61 billion, respectively. Nevertheless, USD1’s rise as a formidable contender signals that there is space for new players in the stablecoin market.

The Role of Binance and BNB Chain in USD1’s Issuance

An essential component of USD1's growth story lies in its issuance mechanism. USD1 is almost exclusively issued on Binance’s BNB Chain, which is a significant factor in its rapid expansion. More than 99% of USD1’s total supply, amounting to $2.1 billion, is issued on the BNB Chain, with a mere $14.5 million on Ethereum-based versions. 

The decision to launch USD1 on Binance's BNB Chain allows it to benefit from the security, liquidity, and scalability of Binance’s network, giving it a unique edge over other stablecoins that operate primarily on Ethereum or other blockchains.

Source: BscScan, Etherscan

Why is USD1 Attracting Global Attention?

One of the most intriguing aspects of USD1’s growth is the source of its investments. While WLFI has been promoting USD1 in the U.S., reports suggest that a significant portion of its inflows is coming from outside the U.S. According to a poll, about 90% of WLFI’s investors are based in regions outside the United States, including Europe, Asia, and Latin America. This global interest in USD1 highlights the international appeal of stablecoins, particularly those associated with high-profile figures like Trump.

Moreover, USD1’s appeal is enhanced by Trump’s pro-stablecoin agenda, which he outlined in his executive order on “Strengthening American leadership in digital financial technology.” This executive order could lay the groundwork for the future integration of stablecoins into the broader financial system, with USD1 positioned as a key player in this vision. 

However, both Trump and Binance have denied any direct connection or deals between the two parties, despite speculation in the market.

The Strategic Role of WLFI and the Future of USD1

WLFI, which has been driving USD1’s expansion, has made headlines for its ability to leverage both traditional finance and the cryptocurrency market. As a prominent figure in the stablecoin space, WLFI has made significant strides in shaping the future of USD1. The current WLFI proposal for a USD1 airdrop aims to boost the coin’s visibility and adoption even further, allowing more users to experience the benefits of the stablecoin.

Additionally, centralized exchanges (CEXs) have been quick to list USD1, with HTX being one of the first to offer the coin on its platform. These exchanges help drive liquidity, making USD1 more accessible to the wider crypto community. The combination of decentralized platforms like PancakeSwap and centralized exchanges like HTX creates a broad distribution network for USD1, increasing its accessibility and potential for growth.

Source: Tran Hung

How USD1 Compares to Other Stablecoins

USD1’s rapid rise raises the question: how does it compare to other major stablecoins in terms of stability and adoption? Stablecoins like Tether (USDT) and USD Coin (USDC) have long dominated the market, with established liquidity pools and widespread usage. 

However, USD1’s rapid expansion shows that new entrants can make a significant impact, especially when they are supported by strong financial backers and strategic market moves.

Although USD1 is still far from challenging Tether and USDC’s dominance, its unique position in the market and its growing adoption outside the U.S. indicate that it has the potential to become a major player in the global stablecoin ecosystem. With further support from WLFI and partnerships with major players in the crypto industry, USD1 could continue to rise in prominence.

Read also : Shping Coin (SHPING) Price Prediction until 2030

Conclusion: The Growing Influence of USD1

USD1’s rapid rise to the seventh-largest stablecoin by market capitalization is a testament to its strong market demand and strategic positioning. Backed by WLFI and former President Trump’s pro-stablecoin policies, USD1 has attracted global attention and investment, marking the beginning of what could be a new era for stablecoins. 

As it continues to grow, USD1’s influence on the crypto market and its role in the broader financial ecosystem will undoubtedly evolve, potentially challenging the dominance of established stablecoins in the near future.

FAQ

What is USD1 and how has it become so successful?

USD1 is a stablecoin launched by World Liberty Financial (WLFI), backed by former President Donald Trump. In just two months, USD1 has rapidly gained traction, becoming the seventh-largest stablecoin globally. Its success can be attributed to its strategic issuance primarily on Binance's BNB Chain, its massive market cap growth, and its backing by high-profile figures and investment firms. USD1's adoption continues to grow, especially outside the U.S., with increasing support from both decentralized and centralized exchanges.

Why is USD1 issued mainly on Binance's BNB Chain?

USD1 is predominantly issued on Binance's BNB Chain because of its scalability, security, and liquidity. Over 99% of USD1’s total supply is issued on BNB Chain, which allows the stablecoin to benefit from Binance’s robust infrastructure. The decision to use BNB Chain has helped USD1 maintain a fast-growing market cap and become accessible to a wide range of users on decentralized exchanges like PancakeSwap and centralized platforms like HTX.

How is USD1 different from other stablecoins like Tether (USDT) or USDC?

While USD1 is still far behind stablecoins like Tether (USDT) and USD Coin (USDC) in terms of market cap, it has differentiated itself with rapid growth, strategic backing from WLFI, and a strong international presence. USD1 has seen a remarkable increase in market cap, fueled by partnerships and global adoption. Additionally, USD1's association with Trump’s pro-stablecoin agenda has helped it stand out, especially with its growing influence outside the U.S. and its issuance mainly on Binance’s BNB Chain.