The stablecoin supply on Binance's BNB chain surges 30% as the $2.1 billion USDT launches.
President Donald Trump's World Liberty Financial USD1 stablecoin breaks into the top 10 by market capitalization.
Binance Chain's stablecoin reserves expanded dramatically this week, adding more than $2 billion in value following the debut of USD1, a politically-branded dollar token issued by World Liberty Financial.
Data from DefiLlama shows that the market cap of the chain's stablecoins increased by 30% over the past seven days, reaching $9.26 billion. This increase narrowed the gap between BSC and Solana to just $3.8 billion, the smallest gap between the two networks since memecoins boosted Solana.
The introduction of USD1 on BSC coincided with its positioning as an institutional-grade stablecoin, backed by US Treasury bonds and secured by BitGo. Its launch comes at a time when stablecoins, in general, have regained momentum. The total market capitalization of the sector increased by 2.5% this week, reaching $240.47 billion, indicating renewed on-chain activity despite regulatory challenges.
BSC’s dramatic expansion of stablecoin supply could disrupt the competitive landscape among Layer 1 blockchains. While Ethereum remains dominant with over $124 billion in stablecoin assets, representing a 52% market share, and Tron maintains a 29% market share at $71 billion, BSC’s rise to 3.8% puts it on par with Solana’s 5%.
There is now a possibility that BSC could overtake Solana in stablecoin volume amid the collapse of memecoin Solana, which could redirect liquidity flows and developer attention away from decentralized finance platforms.
The growth of USD1 on BSC reflects both strategic and political dimensions. The token, touted as fully audited and compliant, bears the association with former US President Donald Trump through its issuer, World Liberty Financial.
This link introduces new regulatory and reputational considerations not typically associated with other dollar-backed assets. BitGo's involvement as custodian, coupled with the stablecoin's backing in fiat currency and Treasury bills, positions USD1 as a direct rival to established competitors like USDT and USDC.