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Trump-Backed USD1 Becomes 7th Largest Stablecoin In Record Time

11h05 ▪ 5 min read ▪ by Mikaia A.
Getting informed Stablecoin

Donald Trump does not like bombs, he says so himself. However, wars seem to be waged in his own way. Whether it’s about customs tensions, power struggles with his own officials, or bellicose speeches abroad, Trump wields confrontation like a trademark. In the crypto industry, the former American president also leads his own campaign: that of stablecoins. With USD1, he orchestrates a digital monetary war mixing political ambitions, geopolitical influence, and economic cannibalism.

Donald Trump holding a USD1 coin on a podium

In Brief

  • USD1 jumped from $128 million to $2.2 billion in capitalization within eight weeks.
  • This stablecoin is issued 99% on the BNB Chain, increasing its dependence on Binance.
  • 90% of WLFI investors come from abroad, highlighting an expansion strategy outside the United States.

USD1 and the Stablecoin War: A Missile in the Cryptosphere

Launched in early March by World Liberty Financial, USD1 has disrupted the established order of stable currencies. It went from $128 million to $2.2 billion in capitalization in two months, surpassing FDUSD, PYUSD, and Tether Gold. While USDT and USDC maintain their lead, USD1 is already ranked 7th worldwide. Its rise was catalyzed by the announcement of a $2 billion investment from MGX, linked to Eric Trump, into Binance via USD1.

The stablecoin is not just a publicity stunt: it is almost exclusively issued on the BNB Chain, emphasizing a strategic anchoring in Binance’s crypto ecosystem. “USD1 provides what anonymous crypto projects cannot: a credible and compliant DeFi integration,” says Zach Witkoff, co-founder of WLFI.

HTX (formerly Huobi), close to Justin Sun, was one of the first to list it, offering fee-free withdrawals. On DEXs like PancakeSwap, demand is exploding.

In this stablecoin war, the Trump effect is working: positioning strategy, media shock, and lightning-fast acceleration. It’s no longer just a token; it’s a flag.

BNB, MGX, WLFI: A Triangle of Influence and Geopolitical Rivalries

Behind USD1 lies another rivalry: that of digital powers. The choice of the BNB Chain as the main vector raises questions about Chinese-American affinities, especially knowing that Binance is often under regulators’ scrutiny. Trump and Binance both denied any collusion, but the connections between WLFI, BNB, and MGX are intriguing.

On its own, MGX, a fund from Abu Dhabi, triggered a speculative wave by investing massively in USD1. WLFI, which has raised $550 million since October, attracts global capital. Justin Sun increased his stake to $75 million in January. And according to V1PS’ founder, 90% of WLFI investors come from abroad: Europe, Asia, Latin America. The United States? Barely a minority.

This phenomenon reflects a globalized crypto world but in the hands of a few powers. At the White House, Trump simultaneously pushes for a “strategic Bitcoin reserve” and legislation favorable to stablecoins. He thus uses crypto not only as an economic lever but also as a diplomatic tool.

A blockchain version of soft power where the war is fought through financial infrastructure.

USD1, a Compliant Alternative Amid Dedollarization

In a context of rising BRICS and the de-Americanization of trade, USD1 stands as a bulwark against dedollarization. Backed by treasury bonds, USD cash, and liquid assets, it distinguishes itself from algorithmic models. BitGo handles custody. Audits are carried out by third parties. It is a product designed for institutions, with explicit compliance.

USD1 enters with institutional design, rigorous compliance, and real anchoring.

Crypto Peak

The stablecoin promises international usability, notably in DeFi and cross-border transactions. Unlike others, USD1 does not play vague or anonymous. It targets serious actors: banks, funds, multinationals.

Some numbers:

  • $2.2 billion capitalization reached in less than two months;
  • 99% of volume issued on the BNB Chain;
  • 90% of WLFI investors located outside the United States;
  • $550 million raised since October by World Liberty Financial.

While Ripple, PayPal, Gemini, or Circle battle to impose their own stablecoins, Trump advances covertly. He offers a digital version of the dollar crafted for influence, intended for states, banks, and global platforms. It’s not just a stablecoin; it’s a weapon for the reconquest of the dollar.

Donald Trump sends mixed signals to the cryptosphere. On one hand, his announcements send bitcoin soaring, close to $100,000. On the other, he denies any link to the profits of his memecoin $TRUMP. Yet, every crypto offensive bearing his name acts as a catalyst. USD1 is no exception: in less than two months, it sparked a stablecoin war where political influence, digital rivalries, and promises of profit cannibalize each other. With Trump, even in crypto, war is a strategy.

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Mikaia A. avatar
Mikaia A.

La révolution blockchain et crypto est en marche ! Et le jour où les impacts se feront ressentir sur l’économie la plus vulnérable de ce Monde, contre toute espérance, je dirai que j’y étais pour quelque chose

DISCLAIMER

The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.