The rapid growth of stablecoins, particularly USD1 from World Liberty Financial, is changing the course of industry discussions. Launched in March 2025, USD1 reached a market capitalization of $2.1 billion in just two months, an explosive debut that has drawn new attention to the potential of Bitcoin as a hosting platform for stablecoin payment rails.
According to a blog post by crypto analyst Norbert, the rise of USD1 fuels broader speculation that Bitcoin is transforming from a store of value into a transactional basis for digital dollars.
WLFI: from skepticism to success
Notably, World Liberty Financial was launched in September 2024 and received mixed reactions. Critics questioned its ties to the Trump family and labeled the project politically motivated. Venture capital firms kept their distance, and analysts noted potential conflicts of interest.
But by March 2025, the narrative changed. The project attracted $590 million in capital through the pre-sale of its own tokens, allowing it to enter the top ten in token raising on DeFiLlama.
According to a blog, the Trump family owns approximately $22.5 billion in governance tokens and earns platform fees, which enhances the polarized reputation of the project. Support from high-profile individuals also emerged. In November 2024, blockchain entrepreneur and Tron founder Justin Sun invested $30 million in World Liberty Financial.
Institutional investors followed suit in the following months. Meanwhile, the announcement of the winding down of the SEC investigation in February helped ease regulatory concerns.
USD1: the fastest-growing stablecoin currency of 2025
Against the backdrop of these successes, USD1 was launched in March 2025 as a stablecoin pegged to the US dollar. It is fully backed by short-term Treasury bonds, cash, and cash equivalents. BitGo Prime manages the custody. CCIP Chainlink provides cross-chain functionality between Ethereum and Binance Smart Chain.
The campaign accelerated adoption and raised the market capitalization of USD1 to $2.1 billion in 60 days, outpacing the early growth of USDT, USDC, and FRAX.
Institutional attractiveness and focus on compliance
USD1 positions itself as a compliance-focused project aimed at institutional capital. It combines regulated asset custody with deep liquidity for traders. Monthly attestations and backing by US assets provide additional transparency. The WLFI approach aligns with growing global calls for clearer regulation of stablecoins.
Notably, the global market capitalization of stablecoins is $252 billion, with forecasts suggesting it will reach $400 billion by the end of the year. Stablecoins account for 88% of all cryptocurrency trading volume, highlighting their growing significance in the digital economy.
Bitcoin as a means of payment?
The rapid growth of USD1 has revived interest in the role of Bitcoin in the stablecoin infrastructure. While stablecoins like USDT dominate Ethereum and other blockchains, the success of Tether with its payment network supported by Plasma Foundation has shown how dedicated infrastructure can optimize transactions.
Plasma enables fast zero-fee stablecoin transfers for Tether users. Analyst Norbert believes that if WLFI adopts a similar model for USD1, integrated with Bitcoin, it could transform Bitcoin into a transactional hub for digital dollars, expanding its use beyond long-term storage.
If Bitcoin becomes the baseline for payments in stablecoins, it could change the nature of digital dollar movement in global markets.