In 2025, a new stablecoin named $USD1 sparked market discussions. It is not just a dollar-pegged token, but it also has the backing of a 60% stake from the Trump family and support from 'World Liberty Financial' (WLFI), a newly established institution. It debuted on Binance, making a grand entrance, seemingly ready to challenge the dominance of the two established stablecoins, $USDT and $USDC .
But does it really have this strength?
1. USD1: A Financial Experiment Behind the Political Halo
USD1 focuses on '100% USD Treasury Bonds + High Liquidity Assets' anchoring, positioning itself as a fiat-backed stablecoin with ultra-high compliance and ultra-strong stability. It supports both ERC-20 and BSC dual chains and integrates Chainlink's CCIP technology for cross-chain functionality, making it one of the technologically advanced stablecoins currently available.
However, its highlight is not just its asset structure, but its political background: the Trump family holds a 60% stake. This gives USD1 an unprecedented national narrative, but it also brings complex compliance risks. Several regions (such as the EU) have already imposed trading restrictions on it, and internal regulation in the U.S. is also closely monitoring it.
2. USDT and USDC: The Big Brothers of Polarized Camps
**USDT (Tether) is the king of stablecoins, accounting for about 70% of the stablecoin market value, focusing on high liquidity, compatible with multiple chains, and widely used in global exchanges. It has relatively low transparency but strong resistance to regulation and high acceptance.
**USDC (issued by Circle) is a representative of U.S. regulatory-friendly stablecoins, featuring regular audit reports and strong compliance risk control, widely used for institutional payments and bridging DeFi and TradFi.
One focuses on heavy usage, while the other emphasizes regulation, each maintaining unique advantages over the long term.
3. The Challenges and Risks of USD1: It's not just a battle of technology or reserves, but also a contest of narratives and regulations.
To shake up USDT and USDC, USD1 needs not only to compete in asset transparency and liquidity but more importantly:
Politicization vs Neutrality: The involvement of the Trump family gives it a highly topical nature, but also brings ideological biases and geopolitical compliance barriers.
Centralization Risk: As a heavily regulated centralized stablecoin, USD1 has the ability to blacklist and freeze assets, which may be a disadvantage for users seeking privacy and freedom.
Market Acceptance: The crypto community is accustomed to the liquidity of USDT and the compliance label of USDC, making it challenging to seize market share from both.
4. Summary: Is USD1 a revolution or a token of allegiance?
From the current perspective, the launch of USD1 seems more like a probing confrontation between stablecoins and national power. It does have differentiated advantages in technology, asset structure, and political narrative, but it also carries more institutional and geopolitical risks.
In the future, can it become the representative of 'politicized dollar stablecoins', or will it just be a fleeting experimental coin? The answer will depend on three dimensions: compliance capability, market penetration speed, and user acceptance of compromises on freedom.
Investors can pay attention but must avoid blind betting. Because in the realm of stablecoins, 'trust' is the most stable anchor.
