USD1 Reaches $5B Market Cap in Under a Year

World Liberty Financial’s stablecoin, USD1, has hit over $5 billion in market value in under a year. This makes it the fifth-largest stablecoin and one of the top 25 cryptocurrencies in the world.

The growth comes as the Trump-family linked crypto project faces rising public and regulatory scrutiny over its banking plans and political ties.

USD1 Surpasses PayPal’s PYUSD

USD1 has grown faster than many established stablecoins. Right now, it has surpassed PayPal’s PYUSD, which currently stands at about $3. 75 billion in market value. Data from CoinMarketCap shows that USD1 now ranks among the largest digital assets globally including USDT and USDC. This reflects strong demand and expanding usage across the crypto market.

In a recent X post, Donald Trump Jr., co-founder of WLFI, highlighted the milestone. He emphasized on the speed at which institutions are adopting the stablecoin. The company continues to position USD1 as a trusted dollar-pegged asset for both retail and institutional users.

In January, the crypto venture announced the launch of World Liberty Markets, a new platform designed to increase the utility of USD1. The platform allows users to borrow digital assets using USD1 as collateral, alongside other major digital assets. This move aims to deepen liquidity and embed the stablecoin into everyday digital finance activities.

WLFI Pushes USD1 Into Real-World Assets

World Liberty Financial has also taken steps to increase the supply of USD1. Through a community governance vote, the company proposed using part of its treasury to support further issuance of the stablecoin. 

The initiative reflects an effort to match growing demand with adequate supply while involving the community in key decisions.

Furthermore, the company plans to expand into real world asset products backed by USD1 as collateral. The strategy aims to link traditional assets with onchain finance. It also expands the stablecoin’s use beyond trading and payments.

To support this vision, WLFI’s subsidiary WLTC Holdings LLC filed an application with the Office of the Comptroller of the Currency (OCC). The goal is to create a national trust bank focused on issuing stablecoins.

According to co-founder Zach Witkoff, the application builds on the strong momentum of USD1, which he describes as the fastest-growing stablecoin to date.

USD1 Bank Application Faces Political Scrutiny

The bank application has drawn political attention. Senator Elizabeth Warren urged the OCC to halt its review, citing the firm’s ties to the President. The Comptroller responded that the agency would handle the application in the same manner as any other filing. 

Senator Warren has also raised concerns about USD1 trading activity on decentralized exchanges. She pointed to the stablecoin’s connection with PancakeSwap, which maintains a liquidity partnership with WLFI to promote USD1 trading pairs. 

PancakeSwap has been linked to large sums of laundered funds tied to North Korea. Senator Warren highlighted these points in a letter to the Treasury Secretary as a potential national security risk.