Ethereum News Today: Coinbase Lists Trump-Backed USD1 Stablecoin Amid $2.2 Billion Growth

Coinbase has confirmed plans to list World Liberty Financial’s USD1 stablecoin, a project backed by former U.S. President Donald Trump and his family, on its platform. The move, announced via Coinbase’s official X account on August 21, 2025, positions USD1 for broader accessibility, particularly for U.S. users, through Coinbase.com and the mobile app. The stablecoin initially launched on the Ethereum network using ERC-20 tokens and has since expanded to Binance Smart Chain and TRON. The listing is considered a significant milestone in USD1’s rapid growth, following a recent $205 million increase in supply, pushing its total market capitalization to approximately $2.2 billion as of the same date [1].

USD1 is designed to be fully backed 1:1 by U.S. dollars, cash equivalents, and U.S. Treasury securities. Monthly third-party audits are conducted to ensure the stability and transparency of the asset. Institutional adoption has grown rapidly, with backing from major crypto players such as Binance and the Abu Dhabi-based MGX fund. The token is also secured by BitGo Trust Company, a regulated custodian, offering added confidence for institutional investors [2].

The political ties to the Trump family have generated considerable attention. Eric Trump shared the Coinbase announcement on social media, amplifying speculation about the project’s future. Although the listing itself is not politically endorsed, the project’s affiliations have raised concerns about potential conflicts of interest and regulatory scrutiny. Notably, the Trump family’s involvement has previously drawn investigations into ethics and compliance issues, especially as the administration plays a growing role in shaping crypto policy [3].

Regulatory considerations remain a key factor in the listing strategy. Coinbase has taken a jurisdictional approach, ensuring compliance with local laws where applicable. The Ethereum contract address for USD1 has been published, allowing users to independently verify the token’s transparency. However, availability may vary by region due to differing regulatory requirements [4].

The introduction of USD1 to Coinbase is expected to boost trading activity and visibility for the stablecoin. Currently, it ranks as the fifth-largest stablecoin globally based on market capitalization. Analysts are watching how both institutional and retail adoption progresses, particularly in light of the ongoing political and regulatory environment [5].

World Liberty Financial has also been considering expanding its market presence through the $WLFI token, with plans to raise up to $1.5 billion to form an exchange-traded company. The broader goal is to increase the project’s footprint in the DeFi ecosystem, leveraging the credibility of USD1’s dollar and Treasury-backed model [1].

Despite these developments, challenges remain. The concentration of liquidity—more than half of USD1’s supply is held by just three large wallets—has raised concerns about market stability. In response, Pennsylvania state lawmaker Ben Waxman proposed HB1812, a bill aimed at prohibiting politicians from profiting off cryptocurrency, a move that could indirectly affect projects like World Liberty Financial [3].

USD1’s launch on Ethereum and Binance Smart Chain has positioned it for international adoption, yet its impact on the broader stablecoin landscape remains to be seen. The stablecoin’s rapid growth is also supported by the GENIUS Act, passed in July 2025, which allows banks to issue stablecoins backed by U.S. dollars and Treasury securities, lending further legitimacy to USD1’s asset structure [1].

As the stablecoin gains traction, the interplay between political influence, regulatory oversight, and market dynamics will continue to shape its trajectory. For now, Coinbase’s decision to list USD1 marks a pivotal step in the project’s evolution and reflects the increasing role of politically aligned crypto initiatives in the DeFi space.

Source:

[1] title: World Liberty Financial's Stablecoin USD1 Now Available ...

url: https://www.hastingstribune.com/ap/business/world-liberty-financial-s-stablecoin-usd1-now-available-on-coinbase/article_159d4954-2c18-51ec-afa1-ea2dac959b18.html

[2] title: Coinbase Lists Trump-Backed USD1 Stablecoin

url: https://www.cryptopolitan.com/trumps-usd1-stablecoin-debuts-on-coinbase/

[3] title: Trump's Crypto is Coming to Coinbase: USD1 Stablecoin ...

url: https://crypto-economy.com/trumps-crypto-is-coming-to-coinbase-usd1-stablecoin-added-to-roadmap/

[4] title: Coinbase Adds Trump-Linked USD1 Stablecoin to Listing ...

url: https://www.ainvest.com/news/coinbase-adds-trump-linked-usd1-stablecoin-listing-roadmap-205m-supply-expansion-2508/

[5] title: Coinbase to Introduce Trump-Supported USD1 Stablecoin

url: https://intellectia.ai/news/crypto/coinbase-to-list-trumpbacked-usd1-stablecoin