Coinbase Lists USD1 Stablecoin as Market Cap Surpasses $2.2 Billion

Coinbase has listed World Liberty Financial’s USD1 stablecoin, significantly expanding its accessibility to both retail and institutional investors. The move allows users to buy, sell, convert, send, and store USD1 via Coinbase’s app and website. Initially launched as an ERC-20 token on Ethereum, the stablecoin is now supported on both Coinbase and Coinbase Exchange, subject to local regulatory constraints. The listing received heightened visibility when Eric Trump, son of the U.S. President, shared the announcement on social media, drawing attention to the project’s political affiliations [1].

USD1, launched in March 2025, has experienced rapid adoption, achieving a market cap of $2.2 billion by late August 2025, according to DeFiLlama. This growth has positioned it as the fifth-largest stablecoin globally, outpacing alternatives such as FDUSD and PYUSD. The token's success is attributed to strong institutional backing, including a $2 billion investment from Binance and Abu Dhabi’s MGX fund. USD1 is fully backed by U.S. dollar deposits, cash equivalents, and U.S. Treasuries, with custodial services provided by BitGo Trust Company. The project also offers monthly third-party audits and zero-fee minting and redemption to build trust among users [1].

The stablecoin operates across multiple blockchains, including Ethereum, Binance Smart Chain, and TRON, enabling broader utility in decentralized finance (DeFi) and centralized markets. However, its fast rise has not gone unnoticed by critics. Over 50% of USD1's supply is concentrated in just three wallets, raising concerns about liquidity centralization and potential volatility risks. Such distribution patterns contradict the decentralized ethos of most stablecoin ecosystems and highlight potential governance challenges [1].

Political connections have also raised eyebrows. The involvement of the Trump family, particularly with Eric Trump's promotion of the stablecoin’s listing, has prompted questions about conflicts of interest and regulatory neutrality. Legislators have begun to scrutinize the project, given its growing influence in financial markets and the political affiliations of its backers [1].

For Coinbase, the listing of USD1 reflects a broader strategy to diversify its stablecoin offerings while balancing innovation with regulatory compliance. For World Liberty Financial, the move represents a significant milestone in its ambition to compete with leading stablecoins such as USDT and USDC. Whether USD1 can sustain its growth amid regulatory and political pressures remains uncertain, but its current trajectory and institutional support indicate it has established itself as a major player in the stablecoin space [1].

Source:

[1] CoinMarketCap Community – https://coinmarketcap.com/community/articles/68a80f8de60ed36351db39b6/