The USD1 stablecoin, issued by Trump-affiliated monetary entity World Liberty Monetary Inc. (WLFI), has skilled a meteoric rise in market capitalization, surging from simply $128 million on April 27 to over $2.1 billion by early Might.
This represents a 1,540% enhance in lower than per week, positioning USD1 because the seventh-largest stablecoin within the international market.
The surge follows a collection of large token mints recorded on BscScan, the block explorer for Binance Sensible Chain, the place most USD1 tokens are issued.
Between April 27 and April 30, a number of giant mintings occurred, some exceeding $90 million per transaction. These occasions led to a spike in provide that catapulted USD1 previous the $2 billion market cap mark on April 30, in accordance with information from CoinGecko, CoinMarketCap, and DefiLlama.
WLFI’s Stablecoin Surges Following $2 Billion Funding Deal
Driving a lot of this development was an announcement on Might 1 from Abu Dhabi-based funding agency MGX, which revealed plans to make use of USD1 to settle a $2 billion investment in Binance.
A state-backed funding agency in Abu Dhabi is about to make a $2 billion funding into crypto trade @Binance utilizing USD1.#Trump #Binancehttps://t.co/2s6LBsx0SL
— Cryptonews.com (@cryptonews) May 3, 2025
A state-backed funding agency in Abu Dhabi is about to make a $2 billion funding into crypto trade The partnership marks one of many first main institutional makes use of of the newly launched stablecoin and was possible the catalyst behind USD1’s extraordinary provide growth.
USD1 launched formally in April following a March announcement from WLFI, which has backing from figures near U.S. President Donald Trump. The coin is designed to take care of a 1:1 peg to the U.S. greenback and is reportedly totally collateralized by short-term U.S. Treasuries, USD financial institution deposits, and money equivalents.
The stablecoin has discovered explicit reputation outdoors the USA, with almost 90% of its present investor base situated in areas reminiscent of Europe, Asia, and Latin America.
Centralized exchanges like HTX have rushed to list USD1 in response to rising demand, providing zero-fee withdrawals on the BEP-20 community. Over 99% of USD1’s complete provide at the moment resides on Binance’s BNB Chain, with a smaller share on Ethereum.
USD1 Challenges Stablecoin Titans with Political Backing and Neighborhood Momentum
USD1 enters a aggressive $231 billion stablecoin market, largely dominated by business giants Tether (USDT) and Circle (USDC), which collectively account for greater than 90% of the sector.
Nonetheless, USD1’s early success suggests a rising international urge for food for politically backed or various stablecoin fashions, notably amid the geopolitical and regulatory shifts shaping the way forward for digital finance.
— Cryptonews.com (@cryptonews) May 7, 2025
Trump family-backed WLFI is testing its on-chain airdrop function by airdropping USD1 stablecoin to token holders.According to its mission to advertise on-chain adoption, WLFI additionally launched a community vote to airdrop USD1 to $WLFI holders, gaining 99.97% approval inside hours.
The airdrop is designed to check the undertaking’s Ethereum-based distribution system and reward early supporters, with voting open till Might 14.
Regardless of considerations over Trump’s political ties and overseas backing, WLFI denies direct Trump household involvement. Since launching in 2024, WLFI has raised $550 million and is positioning USD1 to problem stablecoin giants like USDT and USDC.
In January, the president issued an executive order emphasizing stablecoins as a part of the USA’ digital monetary management technique.
The submit USD1 Stablecoin Blasts 1,540% to $2.1B – Will Trump-Tied Token Keep Its Peg? appeared first on Cryptonews.
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