Trump-backed USD1 stablecoin hits $2 billion market cap

The USD1 (CRYPTO:USD1) stablecoin, launched by World Liberty Financial (CRYPTO:WLFI) and backed by former President Donald Trump, has rapidly grown to become the seventh-largest stablecoin globally.

Since its launch in early March with an initial supply of $3.5 million, USD1’s market capitalisation surged to approximately $2.2 billion by early May, surpassing stablecoins like First Digital USD (CRYPTO:FDUSD), PayPal USD (CRYPTO:PYUSD), and Tether Gold (CRYPTO:XAUT), according to CoinGecko data.

Despite this growth, USD1 remains significantly smaller than major stablecoins such as Tether’s USDT (CRYPTO:USDT) and Circle’s USDC (CRYPTO:USDC), which hold market caps of $149 billion and $61 billion, respectively.

The majority of USD1 tokens are issued on Binance’s BNB Chain, accounting for over 99% of its circulating supply, with only a small portion on Ethereum’s (CRYPTO:ETH) network.

Data from BscScan shows $2.1 billion of USD1 supply on BNB Chain, while Etherscan reports just $14.5 million on Ethereum.

USD1 experienced a sharp market cap increase of 1,540% within two days in late April, rising from $128 million to $2.1 billion.

This spike occurred shortly before Eric Trump announced that Abu Dhabi-based investment firm MGX would invest $2 billion in Binance using USD1 tokens.

HTX, a centralised exchange linked to Tron founder Justin Sun, was among the first exchanges to list USD1 with zero-fee withdrawals on the BEP-20 network as of May 6.

Most investments into WLFI appear to originate outside the United States, with reports indicating that about 90% of investors come from regions including Europe, Asia, and Latin America.

A Bloomberg report on May 7 noted that over half of the top holders of Trump-branded memecoins reside abroad.

The rise of USD1 aligns with Trump’s pro-stablecoin stance outlined in his January executive order on digital financial technology leadership.

Both Trump and Binance have denied any formal partnerships despite WLFI’s close association with Binance, according to public statements.

At the time of reporting, the USD1 (USD1) price was $1.00.