USD1 Stablecoin to Surpass Tether and USDC by 2028: Blockstreet Co-Founder Kyle Klemmer Predicts

According to Blockstreet co-founder Kyle Klemmer, USD1, backed by the Trump administration, could become the world's most dominant stablecoin by 2028, surpassing USDC and Tether. Blockstreet aims to integrate USD1 into crypto and traditional markets, helping to "bank the unbanked." Klemmer believes USD1's appeal is driven by its backing and the government's shift towards crypto, with a growing appetite from countries and sovereign wealth funds.

Blockstreet co-founder Kyle Klemmer has predicted that USD1, the stablecoin backed by the Trump administration, could become the world's most dominant stablecoin by 2028. This prediction comes as Blockstreet, a USD1-native launchpad, aims to integrate the stablecoin into both crypto and traditional markets, with the goal of "banking the unbanked." Klemmer believes that USD1's appeal is driven by its backing and the government's shift towards crypto, with a growing appetite from countries and sovereign wealth funds.

According to Klemmer, USD1's success is not solely dependent on its technical capabilities. He attributes its appeal to its association with the government's changing stance towards the crypto industry. "It stands for a change," he said, noting that there is a significant appetite for USD1 among countries and larger bodies that see opportunities in the stablecoin. This sentiment is echoed by the recent adoption of USD1 by Emirati state-owned investment firm MGX for a $2 billion investment in Binance.

USD1 has been issued on multiple blockchains, including Ethereum, BNB Chain, Tron, and Solana, and has been adopted by some exchanges like Coinbase and Binance. While USD1 has grown to $2.5 billion in market value, it still lags behind established stablecoins like Tether (USDT) and Circle's USDC, which are worth $71 billion and $167 billion, respectively. However, Klemmer is optimistic about USD1's potential, citing the amount of support and outreach the project has received.

World Liberty Financial (WLFI), the issuer of USD1, has also been expanding its stablecoin presence. In a recent minting event, WLFI launched 100 million USD1 tokens on the Solana blockchain, increasing liquidity on the network and making it easier for traders to lend, settle, and trade using USD1. This move signals WLFI's growing ambition to link internet capital markets with stablecoins while leveraging Solana's speed and low fees.

WLFI's governance token, WLFI, is also preparing for a major launch. Both HTX and KuCoin will list the token on September 1, 2025, providing instant exposure and liquidity. KuCoin has also started a USD1 Points Program to encourage the use of USD1, doubling rewards for maker orders and offering special benefits to active traders.

As the stablecoin market is projected to reach $1.2 trillion by 2028, according to Coinbase Institutional's David Duong, USD1's growth trajectory aligns with this market sentiment. The stablecoin market is expected to grow at a compound annual growth rate of approximately 62%, driven by increasing institutional adoption, regulatory clarity, and the integration of stablecoins into global payment systems.

References:
[1] https://thecoinrise.com/wlfi-expands-usd1-stablecoin-with-100m-mint-on-solana/
[2] https://decrypt.co/337399/trump-backed-usd1-supplant-tether-usdc-top-stablecoin-2028-blockstreet
[3] https://blockchain.news/flashnews/stablecoin-market-forecast-to-reach-1-2-trillion-by-2028-per-coinbase-institutional-s-david-duong-336-growth-from-275b