Trump-Backed Stablecoin Edges Closer to Mainstream with Coinbase Nod

Coinbase has added World Liberty Financial USD (USD1), a stablecoin backed by the Trump family’s decentralized finance (DeFi) project, to its listing roadmap. This announcement, made via Coinbase’s official X account, indicates that USD1 could be listed on the exchange once specific technical and regulatory conditions are satisfied. The addition follows a recent $205 million minting of USD1, which increased the total supply of the stablecoin to $2.4 billion, marking a significant milestone since its launch in April 2025.

The stablecoin, which is currently the world’s sixth-largest by market capitalization at $2.39 billion, has steadily grown in prominence. Tether’s USDT maintains a dominant market share at around $167 billion (60%), while Circle’s USDC follows with a 24% share at $67.4 billion. USD1's growth has been supported by its increasing adoption and recent strategic developments, including the expansion of its treasury to a record $548 million. The stablecoin now constitutes 39% of World Liberty Financial’s total crypto portfolio, with additional holdings in assets such as Aave Ethereum USDT and Ethereum.

The timing of the USD1 minting aligns with positive statements from high-ranking U.S. officials on stablecoins. Federal Reserve Governor Christopher Waller, during a speech at the Wyoming Blockchain Symposium, praised stablecoins for their potential to enhance international payments and cross-border transactions. He described the GENIUS Act—recently signed into law—as an important step in unlocking stablecoins’ potential. This sentiment was echoed by Securities and Exchange Commission Chair Paul Atkins, who referred to the legislation as a “seminal step” for the U.S. Congress.

World Liberty Financial’s recent strategic moves include plans to introduce a loyalty program for USD1, incentivizing users through rewards for trading, holding, and staking. The project is also exploring partnerships with select crypto exchanges to define participation guidelines for the program. Additionally, the Trump-backed firm has announced the sale of $1.5 billion worth of stock by publicly traded technology company ALT5 Sigma, with proceeds earmarked for acquiring WLFI tokens. This transaction also includes a swap of $750 million worth of USD1 for shares in ALT5.

USD1’s integration into the broader financial system is gaining momentum, as evidenced by Treasury Secretary Scott Bessent’s efforts to incorporate stablecoins into U.S. fiscal strategy. Bessent has reportedly reached out to major stablecoin issuers, including Tether and Circle, to leverage their reserves—often backed by U.S. Treasuries—to help fund the government’s $36 trillion debt. While this initiative is still in its early stages, it reflects a growing interest in stablecoins as a viable tool for economic policy.

Coinbase’s decision to include USD1 in its listing roadmap underscores the platform’s commitment to supporting innovative and compliant crypto projects. The addition is expected to increase liquidity, visibility, and adoption for the stablecoin, leveraging Coinbase’s extensive user base and reputation for regulatory compliance. For investors, the listing could trigger the so-called “Coinbase effect,” where tokens often experience significant price surges following their inclusion on the exchange.

Eric Trump, a key figure in World Liberty Financial, reiterated the importance of this development, sharing Coinbase’s announcement on his social media channels and hinting at further news. With USD1 continuing to gain traction and institutional backing, its listing on Coinbase marks a critical step in its journey to becoming a mainstream digital asset.

Source:

[1] title1 (https://cryptobriefing.com/usd1-stablecoin-listing-coinbase/)

[2] title2 (https://www.mitrade.com/insights/news/live-news/article-3-1058620-20250821)

[3] title3 (https://cointelegraph.com/news/trump-world-liberty-financial-mints-9-of-its-stablecoin-supply)