Coinbase Gives Green Light to Trump-Backed Stablecoin Amid $2.2B Surge

Coinbase's recent listing of World Liberty Financial’s USD1 stablecoin marks a significant development in the rapidly evolving stablecoin market. The Trump-backed stablecoin, now available for trading on one of the largest cryptocurrency exchanges, has seen a surge in supply and institutional adoption. According to DeFiLlama, USD1's market capitalization has reached $2.2 billion, placing it among the top five stablecoins globally [4]. The listing follows a $205 million minting event in early August, which increased USD1's total supply to $2.4 billion [2]. This growth is supported by a robust treasury, with World Liberty Financial holding $548 million in assets, of which USD1 accounts for 39% [2].

The addition of USD1 to Coinbase’s roadmap was announced on August 21, 2025, and the stablecoin is now accessible on the Ethereum network as an ERC-20 token [3]. Coinbase emphasized that the listing was subject to rigorous regulatory and technical evaluations, ensuring compliance with the firm’s high standards [3]. While trading has not yet commenced, the token is under consideration for the "Experimental" category, which typically applies to newer or less liquid assets. The exchange has cautioned users that early deposits may result in permanent loss until full trading conditions are met [3].

The stablecoin’s growth has also been fueled by a new loyalty program launched by World Liberty Financial, which rewards users for holding, trading, and staking USD1 across partner exchanges [2]. This initiative aims to enhance utility and engagement with the token, aligning with broader efforts to position USD1 as a leading stablecoin. The program is expected to expand to additional platforms, further boosting adoption and liquidity [2].

USD1's expansion has also drawn regulatory attention, particularly due to its political affiliations. The Trump family’s involvement in World Liberty Financial has raised questions about potential conflicts of interest and liquidity concentration, with more than half of the supply held by three wallets [4]. Despite these concerns, USD1 has attracted institutional backing, including a $2 billion investment involving Binance and Abu Dhabi’s MGX fund [2]. The stablecoin is fully backed by dollar deposits, cash equivalents, and U.S. Treasuries, with monthly third-party audits to ensure transparency [4].

The broader regulatory environment for stablecoins is also shifting, with the recent passage of the GENIUS Act providing a framework for issuing and trading stablecoins in the U.S. [1]. Federal Reserve Governor Christopher Waller has expressed optimism about the potential of stablecoins to enhance cross-border payments and extend the role of the U.S. dollar internationally. These developments underscore the increasing recognition of stablecoins as a critical component of the digital asset ecosystem [5].

As USD1 continues to gain traction, its success will depend on maintaining liquidity, user adoption, and technical stability. With institutional support and a growing user base, the stablecoin is well-positioned to compete with established players like USDC and USDT. However, its political ties and liquidity concentration remain key challenges that could influence its long-term viability in the market [4].

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[1] Trump-Backed World Liberty Gets Coinbase Approval With ... (https://finance.yahoo.com/news/trump-backed-world-liberty-212741844.html)

[2] Coinbase Adds USD1 Stablecoin to Roadmap Amid $205 ... (https://coincentral.com/coinbase-adds-usd1-stablecoin-to-roadmap-amid-205m-minting-surge/)

[3] Trump's Crypto is Coming to Coinbase: USD1 Stablecoin ... (https://crypto-economy.com/trumps-crypto-is-coming-to-coinbase-usd1-stablecoin-added-to-roadmap/)

[4] Coinbase lists World Liberty Financial's USD1 stablecoin (https://crypto.news/coinbase-world-liberty-financial-usd1-stablecoin-2025/)

[5] Trump's World Liberty mints 9% of USD1 supply after ... (https://cointelegraph.com/news/trump-world-liberty-financial-mints-9-of-its-stablecoin-supply)