Trump-Backed USD1 Surpasses Paypal's Stablecoin, Reaches $4.9 Billion Issuance Amid Governance‑Vote Criticism

Trump-Backed USD1 Reaches Top 5 Stablecoin Position

USD1, the stablecoin issued by World Liberty Financial (WLFI), a cryptocurrency company co-founded by members of the Trump family, is making strides in the crypto industry.

The stablecoin now commands a market capitalization of nearly $5 billion, leaving Paypal’s PYUSD and DAI behind and becoming the fifth-largest stablecoin

Eric Trump, son of President Donald Trump and co-founder of the company, celebrated this achievement. On social media, Trump stated:

A major milestone for USD1. We are now larger than PayPal’s digital dollar (PYUSD) and growing into one of the most significant digital dollar platforms in the world. This isn’t just about crypto. It’s about building the future of global money. The shift is happening.

This expansion comes after World Liberty Financial passed a criticized proposal to invest part of the unlocked treasury holdings to support USD1’s growth.

According to DeFi^2, the vote was “rigged” by wallets owned by WLFI’s team and strategic partners to drive this growth and direct protocol revenue to the Trumps and the Witkoffs, who would be the only recipients of these funds per the WLFI Gold Paper.

He assessed:

It’s actually as crazy as it sounds: the team is forcing a vote to sell WLFI tokens at the expense of locked holders, in order to fund protocol revenue that goes only to themselves.

Nonetheless, USD1 is dwarfed by the popularity of incumbents in the stablecoin space, including Tether’s USDT and Circle’s USDC. These two options command over 82% of the $313 billion in market capitalization of the stablecoin sector, followed by USDS, an “upgraded version” of the DAI stablecoin, and USDe, issued by the Ethena protocol.

Read more: Trump-Linked World Liberty Financial Seeks National Trust Bank Charter for USD1 Stablecoin

FAQ

• What is USD1?
  USD1 is a stablecoin issued by World Liberty Financial, co-founded by members of the Trump family.

• How does USD1 rank among stablecoins?
  Currently, USD1 has a market capitalization of nearly $5 billion, making it the fifth-largest stablecoin.

• What recent achievement did Eric Trump highlight?
  Eric Trump celebrated USD1’s growth, noting it has surpassed PayPal’s PYUSD and is shaping the future of digital money.

• What controversy surrounds USD1’s growth?
  Some critics allege the vote to support USD1’s expansion was manipulated for the benefit of WLFI’s team and strategic partners.