USD1 Stablecoin Blasts 1,540% to $2.1B – Will Trump-Tied Token Keep Its Peg?

The USD1 stablecoin, issued by Trump-affiliated financial entity World Liberty Financial Inc. (WLFI), has experienced a meteoric rise in market capitalization, surging from just $128 million on April 27 to over $2.1 billion by early May.

This represents a 1,540% increase in less than a week, positioning USD1 as the seventh-largest stablecoin in the global market.

The surge follows a series of massive token mints recorded on BscScan, the block explorer for Binance Smart Chain, where most USD1 tokens are issued.

Between April 27 and April 30, several large mintings occurred, some exceeding $90 million per transaction. These events led to a spike in supply that catapulted USD1 past the $2 billion market cap mark on April 30, according to data from CoinGecko, CoinMarketCap, and DefiLlama.

WLFI’s Stablecoin Surges Following $2 Billion Investment Deal

Driving much of this growth was an announcement on May 1 from Abu Dhabi-based investment firm MGX, which revealed plans to use USD1 to settle a $2 billion investment in Binance.

💰 A state-backed investment firm in Abu Dhabi is set to make a $2 billion investment into crypto exchange @Binance using USD1.#Trump #Binancehttps://t.co/2s6LBsx0SL

— Cryptonews.com (@cryptonews) May 3, 2025

The partnership marks one of the first major institutional uses of the newly launched stablecoin and was likely the catalyst behind USD1’s extraordinary supply expansion.

USD1 launched officially in April following a March announcement from WLFI, which has backing from figures close to U.S. President Donald Trump. The coin is designed to maintain a 1:1 peg to the U.S. dollar and is reportedly fully collateralized by short-term U.S. Treasuries, USD bank deposits, and cash equivalents.

The stablecoin has found particular popularity outside the United States, with nearly 90% of its current investor base located in regions such as Europe, Asia, and Latin America.

Centralized exchanges like HTX have rushed to list USD1 in response to growing demand, offering zero-fee withdrawals on the BEP-20 network. Over 99% of USD1’s total supply currently resides on Binance’s BNB Chain, with a smaller share on Ethereum.

USD1 Challenges Stablecoin Titans with Political Backing and Community Momentum

USD1 enters a competitive $231 billion stablecoin market, largely dominated by industry giants Tether (USDT) and Circle (USDC), which together account for more than 90% of the sector.

Still, USD1’s early success suggests a rising global appetite for politically backed or alternative stablecoin models, particularly amid the geopolitical and regulatory shifts shaping the future of digital finance.

🇺🇸 Trump family-backed WLFI is testing its on-chain airdrop feature by airdropping USD1 stablecoin to token holders.#WLFI $USD1Airdrop #Stablecoinhttps://t.co/066d51P8S6

— Cryptonews.com (@cryptonews) May 7, 2025

In line with its mission to promote on-chain adoption, WLFI also launched a community vote to airdrop USD1 to $WLFI holders, gaining 99.97% approval within hours.

The airdrop is designed to test the project’s Ethereum-based distribution system and reward early supporters, with voting open until May 14.

Despite concerns over Trump’s political ties and foreign backing, WLFI denies direct Trump family involvement. Since launching in 2024, WLFI has raised $550 million and is positioning USD1 to challenge stablecoin giants like USDT and USDC.

In January, the president issued an executive order emphasizing stablecoins as part of the United States’ digital financial leadership strategy.