World Liberty Financial's USD1 Stablecoin Surges 614% in Two Months

USD1, a US dollar stablecoin launched by World Liberty Financial (WLFI), has rapidly ascended to become the seventh-largest stablecoin globally within just two months of its inception. Initially launched in early March with a supply of $3.5 million, USD1 has since expanded its market capitalization to $2.2 billion, surpassing rival stablecoins such as First Digital USD (FDUSD), PayPal USD (PYUSD), and Tether Gold (XAUT).

Despite its rapid growth, USD1's market capitalization still pales in comparison to major stablecoins like Tether’s USDt (USDT) and USDC (USDC), which have market caps of $149 billion and $61 billion, respectively. The majority of USD1's issuance is concentrated on the Binance-backed BNB Chain, with approximately $2.1 billion of its total supply issued on this platform, accounting for over 99% of its circulating supply. In contrast, the Ethereum-based version of USD1 accounts for a mere $14.5 million.

USD1 experienced a significant market spike in late April, with its market capitalization jumping from $128 million to $2.1 billion within just two days. This surge occurred shortly before Eric Trump announced that Abu Dhabi-based investment firm MGX would invest $2 billion in Binance using USD1. The rapid growth of USD1 has attracted the attention of several centralized exchanges (CEXs), with HTX, a crypto exchange closely associated with Tron founder Justin Sun, being one of the first to list the stablecoin with permanent zero-fee withdrawals on the BEP-20 network.

While USD1's market cap has been climbing, reports suggest that a significant portion of WLFI investment is coming from outside the United States. According to a poll by V1PS founder Notaz.Sol, as much as 90% of WLFI investors are likely from non-US jurisdictions, including Europe, Asia, and Latin America. This aligns with Trump’s pro-stablecoin agenda, as outlined in the executive order on “Strengthening American leadership in digital financial technology” issued in January. Despite WLFI's close association with Binance, both Trump and Binance have repeatedly denied any links or deals between the parties.