USD1 Stablecoin Market Cap Surges 1,540% in Less Than a Week

The USD1 stablecoin, issued by World Liberty Financial Inc. (WLFI), has seen a remarkable surge in market capitalization, jumping from $128 million on April 27 to over $2.1 billion by early May. This represents a 1,540% increase in less than a week, positioning USD1 as the seventh-largest stablecoin globally.

The surge in USD1's market capitalization was driven by a series of large token mints recorded on BscScan, the block explorer for Binance Smart Chain. Between April 27 and April 30, several significant mintings occurred, some exceeding $90 million per transaction. These events led to a spike in supply that propelled USD1 past the $2 billion market cap mark on April 30.

One of the key drivers behind this growth was an announcement on May 1 from Abu Dhabi-based investment firm MGX, which revealed plans to use USD1 to settle a $2 billion investment in Binance. This partnership marks one of the first major institutional uses of the newly launched stablecoin and was likely the catalyst behind USD1’s extraordinary supply expansion.

USD1 was officially launched in April following a March announcement from WLFI, which has backing from figures close to U.S. President Donald Trump. The coin is designed to maintain a 1:1 peg to the U.S. dollar and is reportedly fully collateralized by short-term U.S. Treasuries, USD bank deposits, and cash equivalents.

The stablecoin has gained particular popularity outside the United States, with nearly 90% of its current investor base located in regions such as Europe, Asia, and Latin America. Centralized exchanges like HTX have rushed to list USD1 in response to growing demand, offering zero-fee withdrawals on the BEP-20 network. Over 99% of USD1’s total supply currently resides on Binance’s BNB Chain, with a smaller share on Ethereum.

USD1 enters a competitive $231 billion stablecoin market, largely dominated by industry giants Tether (USDT) and Circle (USDC), which together account for more than 90% of the sector. Still, USD1’s early success suggests a rising global appetite for politically backed or alternative stablecoin models, particularly amid the geopolitical and regulatory shifts shaping the future of digital finance.

In line with its mission to promote on-chain adoption, WLFI also launched a community vote to airdrop USD1 to $WLFI holders, gaining 99.97% approval within hours. The airdrop is designed to test the project’s Ethereum-based distribution system and reward early supporters, with voting open until May 14.

Despite concerns over Trump’s political ties and foreign backing, WLFI denies direct Trump family involvement. Since launching in 2024, WLFI has raised $550 million and is positioning USD1 to challenge stablecoin giants like USDT and USDC. In January, the president issued an executive order emphasizing stablecoins as part of the United States’ digital financial leadership strategy.