USD1, the stablecoin created by World Liberty Financial, has officially crossed $3 billion in market value. This has put it close to the “Big Three” stablecoins, making it a major player in DeFi now.
Now valued at $3.12 billion, USD1 has become the sixth-largest stablecoin and the 32nd-largest cryptocurrency overall.
In fact, this move has turned the Trump-linked stablecoin into a major liquidity magnet on exchanges.
A happy community
Commenting on the milestone, World Liberty Financial’s (WLF) team recently noted,
“This is a big moment for our team and WLFI community. But milestones aren’t the goal — building the future of financial rails is. And we are just getting started.”
Zach Witkoff, WLFI’s Co-founder, also celebrated the milestone and said,
Source: Zak Folkman/X
How did Binance play a role in this surge?
The latest surge in USD1’s growth comes from a major push by Binance [BNB] though.
Through its new ‘Booster Program,’ Binance is offering 20% APR on flexible earn products, far higher than what most stablecoins offer.
At the same time, Binance has started swapping all collateral backing its BUSD-pegged tokens into USD1 at a 1:1 ratio. This has effectively made USD1 the new core stablecoin inside its ecosystem.
This has also created strong, ongoing demand, while guaranteeing that USD1 will be used across high-volume trading and lending on the exchange.
While Binance provides liquidity, World Liberty Financial (WLFI) is focused on distribution and real-world usage. As a result, the project has positioned USD1 as a payment-first stablecoin, not a speculative asset.
Moreover, WLFI has secured partnerships with Coinbase and FalconX, giving USD1 access to both retail users and large institutions.
WLFI is also moving into Solana’s territory too. By partnering with Bonk and Raydium, USD1 is trying to attract fast-moving on-chain capital that usually flows through USDC on Solana.
A political shadow
And yet, despite its fast adoption rates, USD1 is one of the most politically sensitive tokens ever launched.
A key moment came when Abu Dhabi’s MGX fund paid $2 billion to Binance, entirely in USD1.
This happened shortly before President Trump issued a full pardon to Binance Co-founder CZ, fueling speculation across Washington.
In fact, Senator Elizabeth Warren used this connection to argue against the GENIUS Act, warning that crypto regulations could be influenced by political deals. According to some critics, the law lacks the safeguards needed to prevent private projects like WLFI from benefiting unfairly from government decisions.
Final outlook
Therefore, with new rules from the GENIUS Act coming into effect, WLFI must prove it can hold its $3 billion market cap without relying on 20% APR rewards.
For now, the project stands in a delicate balance, backed strongly by institutions and its own team.
Final Thoughts
- USD1’s rapid climb underlined the power of exchange-driven demand, but sustainable adoption will require strength beyond Binance’s incentives.
- Regulatory voices, especially Senator Elizabeth Warren, continue to scrutinize USD1’s rapid rise.
Source: https://ambcrypto.com/usd1-crosses-3b-market-cap-heres-why-everyone-is-talking-about-the-timing/