A stablecoin affiliated with Trump is creating a stir in the crypto ecosystem. In only a few weeks, USD1—a stablecoin launched by @worldlibertyfi that is tied to the Trump-branded Liberty Finance movement—has shot up in adoption and market capitalization, becoming one of the most dominant forces on the BNB Chain. Trump-linked stablecoin takes over BNB Chain @worldlibertyfi stablecoin #USD1 has surged from $130M to over $2.12B in market cap since late April. $2.11B worth of #USD1 has been issued on the @BNBCHAIN , pushing the total stablecoin market cap there close to $10B. pic.twitter.com/dtUQmp0hfm — CryptoRank.io (@CryptoRank_io) May 9, 2025 Here’s what you need to know about USD1 and its politically charged progenitor. Since late April, USD1’s market capitalization has skyrocketed from just $130 million to an eye-popping $2.12 billion, representing a more than 1,530% increase in less than a month. The authorities in charge of overseeing the growing world of digital assets have largely been caught flat-footed. BNB Chain Booms as USD1 Drives Capital Inflows Most of this action is happening directly on the BNB Chain, Binance’s native blockchain network. Of the $2.12 billion issued in USD stablecoins, a staggering $2.11 billion has been minted on the BNB Chain—funneled directly onto this layer-1 chain in the same way a stablecoin like USDC would work on Ethereum or Avalanche. This stablecoin issuance has pushed the total stablecoin market cap on BNB Chain close to $10 billion, with DAI, USDC, and BUSD serving as the main drivers behind that figure. The rise in stablecoin liquidity is likely to ignite fresh movement in decentralized finance (DeFi) on BNB Chain, pushing it past Ethereum and other Layer 2 platforms. Trader eyes are glued to the signs: DEX volume increases, liquidity pool growth, and on-chain staking activity. Early data suggests that use of USD1 across DeFi protocols is already well underway. How soon until this use becomes commonplace? And what might it mean for the DeFi sector if it does? USD1 is gaining a renewed interest from users who are looking for stable alternatives to the often volatile world of cryptocurrencies. Still, what really sets USD1 apart isn’t the stable value it offers, but rather its direct connection to the Liberty Finance initiative, which is aligned with former President Donald Trump. Trump-Linked Wallet Moves Millions into ETH and BTC A wallet thought to be linked to Liberty Finance has made some interesting purchases over the last 24 hours. It’s been picking up substantial amounts of both Ethereum and Bitcoin. Confirming through blockchain analytics the purchases of the wallet, we see that it obtained 1,587 WETH at an average price of $2,200, which represents approximately $3.49 million in Ether. It also acquired 9.7 WBTC at a price of $103,092, which brings the total to roughly $1 million in wrapped Bitcoin. Altogether, the wallet deployed $4.94 million in capital into these two leading crypto assets. These purchases have prompted questions about Liberty Finance’s operational strategy. Accumulating both WETH and WBTC at this moment in time conveys a message of confidence in the overall market and its long-term trajectory. In fact, their decision may point to Liberty’s ambition to build out a more robust “crypto infrastructure”—beyond the stablecoin realm. WLFI：我将带头买入 过去 25 分钟，特朗普 WLFI 关联地址以均价 $2200 买入 1587 枚 WETH，以 $103,092 买入 9.7 WBTC，总价值 494 万美元 钱包地址 https://t.co/TBmYTKiW3t 本文由 #Gateio | @Gateio_zh 赞助 pic.twitter.com/H3TzjfEQ2A — Ai 姨 (@ai_9684xtpa) May 9, 2025 The implications of a digital currency politically branded and backed by high-profile crypto asset holdings are also being considered by analysts. The mix of financial usefulness and ideological appeal could entice a wide array of users. What’s Next for USD1 and Liberty Finance? Now, with USD1 firmly among the top stablecoins on BNB Chain by market capitalization, the important question is whether this momentum can be maintained. The success of a stablecoin depends not just on inflows of capital but also on ongoing adoption and integration, as well as on transparency. Liberty Finance seems to be setting itself up as both a financial and an ideological entity in the Web3 world. It’s not clear yet how this will play out. If the movement takes off, it could encourage the development of more financial products within Web3, making them accessible to a larger audience; but if the movement stalls or attracts a lot of regulatory scrutiny, it could have the opposite effect. USD1 has become a significant new player in the stablecoin sector. Its rapid growth might be the harbinger of a new phase in politically motivated financial infrastructure. As Liberty Finance enlarges its asset base and extends its reach, it can be expected to work in concert with other healthy financial actor—to the tune of billions, presumably—watching all the while for any signs that the federal regulatory apparatus has either blessed or cursed the new outfit. Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services. Follow us on Twitter @nulltxnews to stay updated with the latest Crypto, NFT, AI, Cybersecurity, Distributed Computing, and Metaverse news !
