Trump-Linked Stablecoin USD1 Hits $5B Market Cap in Under a Year

TLDR

• USD1 stablecoin reached a $5 billion market cap in less than a year, making it the fifth-largest stablecoin.
• The coin’s success is attributed to its strong infrastructure and institutional adoption.
• USD1 gained attention after being involved in a $2 billion investment deal with Binance.
• Trump’s meme coin TRUMP has fallen more than 93% from its peak, now trading at $4.66.
• Lawmakers have raised concerns about TRUMP due to its potential conflicts of interest.

World Liberty Financial’s (WLFI) USD1 stablecoin has surpassed a $5 billion market cap in under a year. It now ranks as the fifth-largest stablecoin, according to CoinGecko data. The coin has gained traction quickly, especially among institutions, even as other cryptocurrencies, like the Solana-based Trump meme coin, decline.

USD1 Stablecoin Hits $5 Billion in Market Cap

USD1, the dollar-backed stablecoin by World Liberty Financial, reached a $5 billion market cap this week. This milestone positions it as the fifth-largest stablecoin, less than a year after its launch. It has experienced rapid growth, especially as it attracts institutional investors.

The coin’s success can be attributed to its practical use cases and its backing by major financial entities. World Liberty Financial’s push for regulatory approval to form a national trust bank further boosts USD1’s credibility. Co-founder Donald Trump Jr. emphasized that USD1’s infrastructure is designed for real-world scale.

USD1 first rose to prominence through a $2 billion investment in Binance, backed by the Abu Dhabi-based MGX sovereign wealth fund. This deal raised eyebrows in Washington, where lawmakers, including Senator Elizabeth Warren, voiced concerns about potential conflicts of interest. Binance’s founder, Changpeng Zhao, later clarified the deal, explaining that the fund chose USD1 for its crypto-friendly features.

Trump Meme Coin TRUMP Sees Sharp Decline

In stark contrast to USD1’s rapid rise, the Solana-based meme coin TRUMP has fallen significantly in value. TRUMP, launched just days before Donald Trump’s second inauguration, peaked at around $75 but has since dropped over 93%. It is now trading at just $4.66, reflecting a broader trend of declining interest in meme coins.

“Utility is starting to win over pure hype,” said Narek Gevorgyan, CEO of CoinStats, regarding the growth of USD1 and the decline of TRUMP. He added that insiders extracted over $800 million from the TRUMP coin before the hype collapsed. TRUMP’s narrative has faltered, leaving it as a high-risk investment.

Concerns over the TRUMP coin include potential conflicts of interest and the possibility of a rug pull after its three-year lockup expires. In January 2025, Senator Warren highlighted that the Trump Organization controls 80% of the coin’s supply. Some analysts attribute the decline in TRUMP to a wider trend affecting meme coins.

While USD1 continues to grow, it faces regulatory scrutiny. The U.S. Treasury Department and other lawmakers have expressed concerns over the coin’s involvement in decentralized exchanges, particularly PancakeSwap. These platforms have facilitated millions of dollars in transactions, with some funds reportedly linked to North Korea.

Despite these concerns, World Liberty Financial has continued to push forward. The company recently applied for federal approval to create a trust bank that would oversee USD1’s issuance and reserves. This move would place USD1 under direct federal supervision, solidifying its position as a more regulated, yield-bearing stablecoin.

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