USD1 Surges to $2.4B After 205-Million Mint Driven by Fed Speech

World Liberty Financial has significantly expanded its USD1 stablecoin supply by minting an additional $205 million, bringing total circulation to $2.4 billion and elevating USD1 to the sixth-largest stablecoin by market capitalization [2]. This marks the largest single minting event since late April and highlights the growing institutional and market interest in USD1 [2]. The stablecoin is fully backed 1:1 by U.S. dollars and Treasuries, with custodial services provided by BitGo [2].

The expanded supply and broader visibility have led to increased institutional adoption, including USD1’s use in a $2 billion investment into Binance and as part of the settlement proceeds for Bullish Exchange’s IPO [2]. The project’s treasury now holds a diversified portfolio valued at $464.8 million, with USD1 holdings making up $212.6 million of that sum [2]. This strategic allocation across multiple chains, including Ethereum, BNB Chain, and Tron, reflects a move toward multi-chain exposure and operational diversification [2].

Coinbase has added USD1 to its listing roadmap as an ERC-20 token, signaling growing legitimacy and potential for broader retail and institutional adoption [2]. The exchange has emphasized the importance of using Ethereum for USD1 transactions to avoid potential loss due to network incompatibility [2]. This listing, combined with WLFI’s launch of a USD1 Points Program, aims to drive user engagement by rewarding participants for holding, trading, staking, and using the stablecoin on partner platforms [2].

The timing of the mint aligns with increasing regulatory clarity in the U.S., particularly with the passage of the GENIUS Act, which sets guidelines for stablecoin backing and transparency [2]. Federal Reserve Governor Christopher Waller has publicly supported the role of stablecoins in enhancing cross-border payments and reinforcing the dollar’s global dominance [2]. SEC Chair Paul Atkins has also praised the act as a transformative milestone for the industry [2].

Critics, however, have raised concerns about the close ties between World Liberty Financial and the Trump family, questioning the potential blurring of lines between government influence and private crypto ventures [2]. Despite this, the project continues to gain traction through strategic minting, exchange partnerships, and real-world use cases that reinforce its credibility in both DeFi and institutional markets [2].

The USD1 Points Program is modeled after traditional loyalty systems, offering users incentives in a manner similar to airline or hotel rewards, with benefits extending to DeFi and app usage in the future [2]. As institutional demand for stablecoins grows, USD1’s transparent backing and regulatory alignment position it as a strong competitor to USDT and USDC [2]. Analysts suggest that such developments could drive broader crypto adoption as stablecoins become more integrated into traditional financial systems [2].

World Liberty Financial has also announced plans to create a publicly traded entity to hold its WLFI tokens, aiming to raise $1.5 billion in the process [2]. This move, along with USD1’s growing institutional utility and regulatory alignment, signals a potential shift in how stablecoins are perceived and utilized in the global financial landscape [2].

Source:

[1] Trump's World Liberty Mints 9% of USD1 Supply (https://www.bitrue.com/blog/trump-world-liberty-usd1-supply)

[2] Trump-Linked Stablecoin Surges to $2.4B After $205M Mint (https://cryptonews.com/news/trump-linked-stablecoin-surges-to-2-4b-after-205m-mint-fueled-by-fed-speech/)

[3] Regulators Back Stablecoin Push as USD1 Rises to Sixth (https://www.ainvest.com/news/regulators-stablecoin-push-usd1-rises-sixth-largest-2508/)

[4] Trump's World Liberty Records $205M Stablecoin Mint After (https://www.tronweekly.com/trumps-world-liberty-records-205m-stablecoin/)