USD1 hits $5B market cap, becoming world’s fifth-largest stablecoin

Trump-linked World Liberty Financial USD1 stablecoin has reached a market capitalization of $5 billion, making it the fifth-largest stablecoin in the world. Loan linkages and regulatory tailwinds from the GENIUS Act drove this surge.

USD1’s $5 billion market cap has surpassed PayPal’s PYUSD market cap of $3.75 billion. The stablecoin is currently among the top 25 cryptocurrencies in the world, with 583K holdings compared to PYUSD’s 101K. The token hit this milestone in under a year since its debut.

Binance incentives accelerate USD1 exchange adoption

On Wednesday, the Co-founder of World Liberty Financial, Donald Trump Jr., praised the USD1 stablecoin, saying it is “Built in America, designed for real-world scale, and adopted by serious institutions.” He also pointed out that USDI is a result of the team’s focus on building infrastructure over noise.

The Trump family broadly cheered USD1’s success. Trump Jr. shared a CoinMarketCap screenshot on X showing the stablecoin’s milestone. Eric Trump, a co-founder and younger brother of Trump Jr., also celebrated the accomplishment of USD1.

Despite the attention, on-chain data from CoinMarketCap revealed that USD1 has been essentially flat around $0.9993, down about 0.02% over the last 24 hours but up 0.05% in the previous 7 days. The data also showed the token rose 191% from last month. USD1 has approximately $1.7 billion in 24-hour volume.

This growing visibility and market activity have translated into increased support on major crypto exchanges. In late December, Binance announced the introduction of the ‘USD1 Boost Program’ by adding TRX/USD1 and USD1/U margin pairs. The exchange noted that the program is designed to help USD1 holders maximize their reward.

Binance revealed that the “Booster Program” encourages adoption by offering 20% APR on USD1 holdings. This increases the usefulness of USD1 in leveraged strategies, the platform added.  However, if Binance’s incentives taper, volatility risks will increase. In the immediate term, liquidity could increase by 15% to 25%.

World Liberty launches USD1 into regulated crypto lending space

World Liberty Financial is growing its presence in the cryptocurrency credit sector. On January 12, WLF announced the launch of a new platform called ‘World Liberty Markets.’ 

The platform will allow users to lend and borrow digital assets using USD1, alongside other primary tokens such as USDC, USDT, and tokenized bitcoin. This debut marked a strategic shift away from stablecoin issuance toward a range of financial products.

The launch of the World Liberty Markets platform aligns with a rebound in the cryptocurrency credit markets, providing an opportune moment for WLF to expand its offerings.

A study from Galaxy Digital in November of last year revealed that active DeFi loans had increased to around $41 billion by the end of the third quarter of 2025. The increase in active DeFi loans helped push total cryptocurrency lending across controlled and decentralized platforms to a new all-time high of about $74 billion.

Zachary Folkman and Chase Herro, two World Liberty executives, established Dough Finance, an Ethereum-based lending protocol based on Aave V3 infrastructure that was the target of a flash loan breach in 2024. In the cryptocurrency credit market, Dolomite and Aave are rivals.

At the same time, World Liberty has been working to legitimize its stablecoin operations in the U.S.

Earlier this month, an affiliated company, WLTC Holdings LLC, applied to the Office of the Comptroller of the Currency (OCC) seeking permission to establish a national trust bank focused on stablecoin issuance, custody, and conversion.

Zach Witkoff, a co-founder of World Liberty, said, “This application represents a further evolution of the WLFI ecosystem.” In its first year of existence, USD1 increased more quickly than any other stablecoin in history, he added.

Witkoff stressed that a national trust charter will allow WLFI to integrate issuance, custody, and conversion into a single, tightly regulated institution.

Join a premium crypto trading community free for 30 days - normally $100/mo.