The latest news on the $USD1 stablecoin, linked to Donald Trump's World Liberty Financial (WLFI), highlights several key developments:
USD1 has rapidly grown to a $2.1 billion market cap, making it the 7th-largest stablecoin and the second largest on BNB Chain after USDT.
It is now cross-chain, running on Ethereum, BNB Chain, and more networks via Chainlink’s Cross-Chain Interoperability Protocol, enhancing security and DeFi use cases.
Despite this growth, USD1 faces challenges such as limited organic demand, concentration of liquidity in a few wallets, and skepticism from some political figures.
A major milestone was USD1 being selected as the official stablecoin for a $2 billion investment by MGX into Binance, signaling institutional interest.
Trading volume is significant, with over $26 million daily on decentralized exchanges like PancakeSwap and Uniswap, though centralized exchange volume remains lower.
The stablecoin's price remains stable around $1, maintaining its peg with minor fluctuations.
In summary, $USD1 is gaining traction as a politically backed stablecoin with growing market cap and cross-chain capabilities, but it still faces hurdles in broader adoption and regulatory scrutiny.