USD1 Surges Past Rivals as Trump-Linked Stablecoin Gains Institutional Momentum

TLDR

• USD1 hits $5B and ranks fifth as WLFI seeks a US trust bank charter
  
  

• USD1 gains ground on major platforms as stablecoin rules reshape the market
  
  

• TRUMP meme coin sinks over 93% as USD1 expands with institutional momentum

World Liberty Financial’s USD1 reached a $5 billion market cap and ranked as the fifth-largest stablecoin globally. The surge lifted USD1 past several older tokens and tightened competition among dollar-pegged crypto assets. The move also shifted attention toward regulated issuance, and away from pure hype tokens tied to the same political brand.

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USD1 builds scale as oversight plans take shape

World Liberty Financial pushed USD1 above $5 billion in market value in under a year. As a result, USD1 climbed into the top five stablecoins on CoinGecko’s rankings. The project linked that growth to adoption that favors settlement utility and large-platform support.

The company applied to form a national trust bank under the U.S. Office of the Comptroller of the Currency. If regulators approve it, the proposed trust would issue and redeem USD1 under direct federal supervision. It would also run custody, conversions, and reserve management as part of the same structure.

USD1 gained wider notice after a $2 billion Binance investment tied to Abu Dhabi-based MGX used USD1 for payment. That transaction triggered public questions from U.S. lawmakers about potential conflicts of interest. Soon after, Binance added USD1 into core platform functions and expanded access across its product stack.

USD1 faces policy pressure tied to DEX flows and compliance risks

Lawmakers also raised security and compliance concerns around USD1 activity on decentralized exchanges. Senator Elizabeth Warren flagged risks in a letter addressed to Treasury Secretary Scott Bessent and Attorney General Pam Bondi. She pointed to exposure tied to PancakeSwap trading and prior illicit-funds reporting linked to North Korea.

Warren also highlighted a reported liquidity partnership that promoted USD1 trading pairs on PancakeSwap. That linkage added political heat because it combined a high-profile brand with permissionless trading rails. At the same time, it increased pressure for clear audit trails and tighter controls around token flows.

                       USD1 just reached a $5B market cap.

Binance founder Changpeng Zhao addressed the MGX payment structure in recent media comments. He described the arrangement as misunderstood and said MGX selected USD1 for the transfer. Still, the episode kept USD1 in the center of a widening policy debate on stablecoin governance.

TRUMP token slides as demand shifts toward settlement tools

The Solana-based Official Trump token fell more than 93% from its peak near $75. The token last traded around $4.66, and it failed to regain momentum after an early burst of attention. That decline contrasted with USD1’s rise and reinforced a market split between utility and spectacle.

Commentators tied the drop to broader memecoin weakness and to heavy early selling. Some analysts cited reports that insiders extracted more than $800 million before sentiment collapsed. As a result, the token now trades as a high-volatility asset with limited use beyond speculation.

Lawmakers raised conflict and influence concerns about the TRUMP token’s structure. Previous disclosures and public statements linked supply concentration to Trump-affiliated entities and cited long lockups. Those concerns stayed in focus as the token’s price fell and liquidity thinned.

Stablecoin rules reshape competition as supply expands

The wider stablecoin market also grew after Congress passed the GENIUS Act and set a federal framework for dollar-pegged tokens. Total U.S. dollar stablecoin supply reached about $312 billion based on CoinGecko tracking. That growth created space for newer entrants like USD1 to gain share quickly.

At the same time, the market rewarded designs that support large transfers, clearer reserves, and platform integrations. That preference supported USD1’s narrative as infrastructure, rather than a short-lived campaign product. It also aligned with efforts to place stablecoin operations under bank-style supervision.

Forecast signals still show uncertainty on near-term sector expansion despite the recent rise. Users on the prediction market Myriad priced only a 2% chance of the sector topping $360 billion before next month. Even so, USD1’s jump to $5 billion showed how fast branding, rails, and distribution can move capital.