USD1: Trump-Backed Stablecoin Surges to Fifth-Largest Position

USD1, a stablecoin issued by World Liberty Financial WLFI , co-founded by the Trump family, has recently risen to become the fifth-largest stablecoin in the cryptocurrency market. As of January 26, it achieved an issuance of 4.92 billion, surpassing Paypal s PYUSD with a market capitalization of 3.7 billion.
Eric Trump, son of former President Donald Trump and co-founder of WLFI, celebrated this milestone on social media, stating,
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 growth follows a controversial decision by World Liberty Financial to invest part of its unlocked treasury holdings to support USD1 s expansion. Critics have claimed that the vote for this proposal was rigged by wallets owned by WLFI s team and strategic partners. One critic noted,
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.
Despite its recent success, USD1 still lags behind major players in the stablecoin market, such as Tether s USDT and Circle s USDC, which together account for over 82 of the 313 billion market capitalization of the sector. Other notable stablecoins include USDS, an upgraded version of DAI, and USDe issued by the Ethena protocol.