Solana News Today: Trump-Backed USD1 Surpasses $2.5B as Stablecoin Rival Emerges

Justin Sun, founder of the Tron blockchain network, has announced that the Tron Network has minted an additional 25 million USD1 stablecoins, adding to the existing supply. This development comes amid growing activity in the USD1 stablecoin, which is backed by the Trump family’s crypto venture, World Liberty Financial (WLFI). The USD1 token has seen a significant increase in circulation, with recent reports indicating that its total supply has reached $2.5 billion as of August 2025, according to CoinGecko data. This figure reflects a notable rise from the stablecoin’s earlier market position and underscores the growing interest in USD1 across both decentralized and centralized platforms.

The USD1 stablecoin was initially launched on the Solana blockchain in April 2025, where it was minted in a single transaction of 100 million tokens. This move was part of WLFI’s broader strategy to leverage high-performance blockchains for stablecoin issuance. The Solana launch was supported by prominent figures in the crypto space, including Solana co-founder Anatoly Yakovenko, who publicly endorsed the project. The decision to issue USD1 on Solana was also driven by the network’s fast transaction speeds and low fees, positioning USD1 to compete with other major stablecoins like Tether’s USDT and Circle’s USDC.

Coinbase, one of the largest cryptocurrency exchanges, has confirmed plans to list USD1, further expanding its adoption and liquidity. This listing, alongside others on exchanges such as Binance and HTX, highlights the growing institutional backing of USD1. Notably, HTX and KuCoin announced plans to list the WLFI governance token on September 1, 2025, with deposits already open for trading pairs like WLFI/USDT and WLFI/USD1. These developments indicate a coordinated effort to build infrastructure and liquidity for USD1 and WLFI, with the latter token expected to play a central role in governance and DeFi applications.

USD1’s rapid expansion is also tied to large-scale minting activity. In late August 2025, WLFI unexpectedly minted $205 million worth of USD1, increasing the total supply by 9 percent. This marked the largest single-day increase in USD1’s circulation and brought its total supply to $2.4 billion, making it the sixth-largest stablecoin by market capitalization. The minting event occurred shortly after a pro-stablecoin speech by Federal Reserve Governor Christopher Waller, suggesting a strategic alignment with favorable macroeconomic narratives around stablecoin adoption and dollar-backed digital assets.

On-chain data analysis by DisruptionBanking reveals a complex network of transactions involving USD1 and WLFI. The stablecoin has been integrated with multiple DeFi protocols, including Aave, Falcon Finance, and CoW Protocol, to provide liquidity and trading capabilities. Notably, USD1 has been used in large-scale transactions involving institutional custodians such as BitGo, with over $52 million transferred to WLFI’s treasury in a single session. These transactions suggest active treasury management and coordination with institutional actors, reinforcing the growing role of USD1 in cross-platform financial operations.

The broader implications of USD1’s rise are being closely watched by both market participants and regulators. Critics, including U.S. Senator Elizabeth Warren, have raised concerns about the political influence behind the stablecoin and its potential to facilitate unregulated financial activity. Meanwhile, proponents argue that USD1 represents a strategic shift in how the U.S. dollar is digitized and deployed globally, particularly with backing from Middle Eastern investors and U.S. political figures. The Trump family’s ownership of a significant stake in World Liberty Financial further complicates the narrative, with 60 percent of WLF controlled by a Trump family entity and 22.5 billion WLFI tokens allocated upfront to the family and its affiliates.

Looking ahead, forecasts for USD1’s future dominance vary. Kyle Klemmer, co-founder of Blockstreet, a firm tasked with promoting USD1, has predicted that the stablecoin could surpass USDT and USDC by 2028, positioning it as the most widely adopted stablecoin globally. However, such forecasts are speculative and must be viewed in the context of the broader stablecoin market, which is expected to grow significantly in the coming years. With USD1 currently valued at $2.5 billion, it faces formidable competition from established players in the sector.

As the USD1 stablecoin continues to expand, the interplay between technology, politics, and finance remains a focal point of debate. While its adoption on major blockchains and exchanges signals growing legitimacy, the underlying governance and financial structure of World Liberty Financial remain under scrutiny. The trajectory of USD1 will likely depend on how effectively it can navigate regulatory expectations, maintain transparency, and demonstrate long-term utility beyond its current political affiliations.

Source:

[1] title1 (https://www.odaily.news/en/newsflash/446076)

[2] title2 (https://coingape.com/world-liberty-financial-launches-usd1-stablecoin-on-solana/)

[3] title3 (https://www.disruptionbanking.com/2025/08/27/trump-family-stablecoin-minted-millions/)

[4] title4 (https://finance.yahoo.com/news/trump-backed-usd1-supplant-tether-130103183.html)

[5] title5 (https://decrypt.co/337399/trump-backed-usd1-supplant-tether-usdc-top-stablecoin-2028-blockstreet)