World Liberty Financial’s USD1 Tops $5B Market Cap as TRUMP Meme Coin Stumbles
The USD1 stablecoin, backed by World Liberty Financial and linked to the Trump brand, has reached over $5 billion in market capitalization within a year, becoming the fifth-largest stablecoin. This growth contrasts sharply with the Solana-based Official Trump (TRUMP) meme coin, which has plummeted over 93% from its peak. USD1’s momentum follows its use in a $2 billion Binance investment from Abu Dhabi’s MGX fund and subsequent integration into Binance’s infrastructure. World Liberty Financial has applied for a national trust bank charter to further legitimize USD1 operations. However, lawmakers like Senator Elizabeth Warren have raised concerns about USD1’s potential national security risks, including its use on decentralized exchanges linked to illicit finance. The TRUMP meme coin, heavily controlled by the Trump Organization, saw insiders withdraw $800 million before its collapse and faces scrutiny over conflicts of interest and foreign influence. The shift in capital toward regulated, yield-bearing stablecoins like USD1 comes amid broader stablecoin sector growth, spurred by new U.S. regulation. Total U.S. dollar stablecoin supply now stands at $312 billion.
