- Rapid Expansion: USD1
At the beginning of this year, WLF first announced its plan to launch USD1, a stablecoin targeting institutional investors. USD1 is pegged to the US dollar at a 1:1 ratio, with its asset reserves composed of cash, US Treasury bonds, and equivalents. The asset custodian is BitGo, and the accounting firm Crowe LLP issues monthly reserve attestation reports. The industry generally considers its transparency and credibility to be high. USD1 was officially launched in early March this year, with an initial supply of USD 3.5 million. As of now, its market capitalization has exceeded USD 2.7 billion, ranking seventh among stablecoins.
USD1 has garnered significant attention since its inception and has rapidly risen in prominence in recent months, leveraging its strong backing. USD1 is almost entirely issued on the BNB Chain. According to BscScan data, the supply of USD1 issued on the BNB Chain reaches 2.1 billion USD, accounting for over 99% of its total circulation. Meanwhile, according to Etherscan data, the Ethereum version only amounts to 14.5 million USD. Subsequently, major public chains with high transaction volumes, such as Tron, have also listed USD1 to meet on-chain capital demands. Within just a few months, USD1 was listed on major exchanges like Binance, Bitget, and Bybit, quickly integrating into multiple on-chain ecosystems.
USD1’s rapid expansion would not have been possible without the support of major exchanges. Binance was the first to list USD1 in April, followed by PancakeSwap, which increased exposure through promotional activities. Related memecoins quickly swept the market, such as $B, which surpassed $400 million in just ten days, sparking another small boom on the BNB Chain. Bitget and Bybit subsequently listed USD1 in June and July, respectively, and launched airdrops and reward programs, further expanding liquidity and user access.
- Political Elements: Off-Chain Controversy Surrounding USD1
While focusing on USD1’s product design, users have also developed a strong interest in its political backdrop. As is well-known, USD1 originates from WIF, which is backed by the Trump family, currently at the height of its influence. Therefore, one of USD1’s key features is its deep ties to the Trump family, which may also explain why USD1 possesses such strong market mobilization capabilities, even leading the Abu Dhabi Investment Fund MGX to invest approximately 2 billion USD1 into Binance. The Trump family’s resources, combined with international capital backing, have provided USD1 with a growth environment distinct from most other stablecoins from the outset.
However, as the circulation of USD1 has surged, an increasing number of citizens—and even politicians—have begun to question whether the Trump family is exploiting their political status to pursue commercial interests. For instance, several senators from the U.S. Senate Banking Committee have sent an open letter to regulatory authorities, demanding an investigation into USD1’s compliance and potential conflicts of interest. They argue that if the presidential family directly profits from the stablecoin business, the independence of regulatory authorities could be severely compromised.
In fact, such concerns are not unfounded. The memecoin $TRUMP, which caused a stir in January this year, sparked similar questions. At the time, the token was believed to potentially circumvent campaign finance regulations, serving as a key channel for the Trump family to obtain opaque revenues or even political bribes. Although USD1 and the Trump coin differ significantly in their positioning and nature, they share a similar core issue: Whether the Trump family is using the cryptocurrency market to gain additional political or economic advantages. Some media outlets have also pointed out that the collaboration between USD1 and Binance may involve further利益 exchanges, as Binance has long faced scrutiny from U.S. regulatory authorities, yet it has been particularly proactive in promoting and applying USD1. There is widespread concern that such practices could turn stablecoins into tools for politicians to seek rent-seeking opportunities, further complicating regulatory efforts and undermining social fairness.
Currently, the U.S. Congress is pushing for new stablecoin laws and additional cryptocurrency regulatory rules. Whether USD1 can successfully obtain and maintain compliance status will directly impact its long-term development. Especially in the context of partisan political maneuvering, some lawmakers may propose special restrictions targeting the Trump family’s cryptocurrency operations. As a “pioneer,” USD1 faces certain political uncertainties and compliance risks.
Despite these controversies, USD1 continues to provide cryptocurrency investors with additional trading options and a more convenient market environment, increasingly gaining favor among investors.
