USD1, a stablecoin developed by World Liberty Financial, has surpassed $3 billion in market Capital and quickly become a " liquidation magnet" on exchanges, thanks to strong support from Binance.
This surge brings USD1 close to the leading group of stablecoins, but also raises questions about sustainability as high-yield rewards diminish and new regulatory environments like the GENIUS Act begin to take impact.
- USD1 has reached a market Capital of approximately $3.12 billion, becoming the 6th largest stablecoin and the 32nd largest cryptocurrency.
- Binance is boosting demand through a 20% APR “Booster Program” and converting BUSD Peg collateral to USD1 at a 1:1 ratio.
- USD1 is experiencing rapid growth but is overshadowed by political factors and subject to legal scrutiny, especially with the mention of the GENIUS Act.
USD1 surpasses $3 billion and climbs into the top group of stablecoins.
USD1 has surpassed $3 billion in market Capital , currently standing at around $3.12 billion, making it the 6th largest stablecoin and the 32nd largest in the crypto market by size.
According to market data cited from price tracking sites, USD1 is currently valued at approximately $3.12 billion. This milestone brings USD1 closer to the leading group of stablecoins and makes the Token a XEM source of liquidation in DeFi and on exchanges.
Rapid increases in market Capital are often accompanied by factors such as distribution, trading liquidation , and practical usage mechanisms. In the case of USD1, the increase not only reflects natural user demand but is also strongly linked to incentive mechanisms and changes within the exchange's ecosystem.
The WLFI community views this milestone as the starting point for financial infrastructure.
The World Liberty Financial team stated that the $3 billion milestone is a significant achievement, but the goal is to build "financial rails," not just chase numbers.
In a social media announcement, the World Liberty Financial (WLF) team emphasized that the project focuses on building payment infrastructure and money flow, rather than considering Capital as the ultimate goal.
“This is a big moment for our WLFI team and community. But milestones aren’t the goal — the goal is to build the future of financial infrastructure. And we’re just getting started.”
– World Liberty Financial (WLF) community announcement
Binance is a major driver behind the USD1 surge.
USD1 surged thanks to Binance driving demand through its 20% APR yield program and its mechanism for converting collateralized assets Peg to BUSD at a 1:1 ratio.
Binance has launched a “Booster Program” offering a 20% APR for its flexible earn product, significantly higher than the typical yields offered by many stablecoins. This incentive structure could attract short-term capital seeking yields, thereby increasing demand for holding USD1 within the exchange's ecosystem.
Simultaneously, Binance began swapping all collateral behind BUSD Peg Token to USD1 at a 1:1 ratio. If sustained on a large scale, this move would make USD1 the new "core" stablecoin in a part of the ecosystem's operation, thereby creating demand for its regular use in high-volume trading and lending.
Combining these two factors (yields + collateral conversion) can create sustained demand and improve liquidation on the market. However, this also raises questions for the market: is this demand sustainable if yields fall or incentive policies change?
WLFI expands distribution and positions USD1 as the preferred stablecoin for payments.
WLFI focuses on bringing USD1 into practical distribution and usage channels, positioning the Token as a stablecoin for payments rather than a speculative tool.
The project describes USD1 as "payment-first," emphasizing its practical application rather than price volatility. From a growth perspective, this positioning aims to shift demand toward payments, remittances, and activities related to the on-chain/off-chain economy, rather than relying solely on short-term transaction dynamics.
WLFI also announced partnerships with Coinbase and FalconX to expand access to both retail and institutional users, thereby improving the liquidation coverage and availability of USD1 across various transaction channels.
USD1 targets the Solana system through partnerships with Bonk and Raydium.
WLFI is entering the Solana system by partnering with Bonk and Raydium , aiming to attract fast on-chain Capital flows that typically circulate around USDC on Solana.
Given Solana 's high on-chain liquidity flow, accessing projects/ liquidation points like Bonk and Raydium could be a strategy for USD1 to increase its presence in swap operations, liquidation provision, and DeFi strategies.
If USD1 wants to compete on Solana, the factors typically monitored by the market include: liquidation depth on the DEX, slippage, wallet/app integration level, and the reliability of the escrow mechanism. The challenge is not just about "being present," but about becoming the default choice when Capital flows in.
USD1 is subject to "political scrutiny" and viewed through a legal lens.
Despite its rapid growth, USD1 is XEM a politically sensitive Token , especially after MGX (Abu Dhabi) paid Binance $2 billion entirely in USD1.
One notable development was Abu Dhabi's MGX fund's payment of $2 billion to Binance, entirely in USD1. This occurred before President Trump issued a full pardon for CZ (Binance co-founder), sparking much speculation in Washington.
Senator Elizabeth Warren used this connection to argue against the GENIUS Act, warning that crypto regulations could be influenced by politically motivated deals. Some critics argue that the framework may lack safeguards to prevent private projects from unfairly benefiting from government decisions.
The outlook depends on the ability to maintain Capital as incentives decrease and new regulations tighten.
To maintain its market Capital around $3 billion, WLFI needs to demonstrate that USD1 can hold its own without relying too heavily on the 20% APR yield and the exchange's incentive mechanisms.
When new rules related to the GENIUS Act are mentioned in the context of stablecoin regulation, the market often shifts its focus from “rapid growth” to “sustainability”: backing structure, operational transparency, counterparty risk, and the degree of reliance on a single distribution channel.
Currently, USD1 is in a delicate balance: on the one hand, it is supported by exchange liquidation and institutional participation; on the other hand, it faces pressure from regulatory oversight and the risk of a cooling "preferential demand." The long-term direction will depend on the actual usage and the degree of diversification of off liquidation .
Frequently Asked Questions
What is the current market Capital of USD1 and what is its ranking?
USD1 has surpassed $3 billion in market Capital and is currently trading at around $3.12 billion, making it the 6th largest stablecoin and the 32nd largest cryptocurrency by size.
Why is Binance XEM a driving factor behind the rapid rise of USD1?
Binance is launching a “Booster Program” offering a 20% APR for flexible earns and converting the collateral behind BUSD Peg Token to USD1 at a 1:1 ratio, thereby creating demand and ensuring the usage of USD1 within the exchange's ecosystem.
How is WLFI expanding USD1 to the Solana system?
WLFI is partnering with Bonk and Raydium to attract rapid on-chain Capital flows on Solana and compete with the liquidation flows typically centered around Capital within the USDC .
What is the biggest risk for USD1 in the coming period?
The central risk is sustainability if demand is primarily driven by the 20% APR incentive or exchange-generated momentum, along with the political sensitivity and regulatory oversight pressures associated with the GENIUS Act.
