USD1 traded around $0.9996 as of writing , holding its peg while recording a weekly gain of about 0.09%. The World Liberty Financial-issued stablecoin reached a market capitalization of nearly $4.9 billion, overtaking PayPal’s PYUSD at roughly $3.75 billion. Trading activity reflected the shift. USD1 logged more than $2.2 billion in 24-hour volume, far above PYUSD's $134 million, signaling deeper on-chain usage and exchange engagement. Market Rankings Highlight a Changing Stablecoin Order The move pushed USD1 into the top tier of crypto assets, ranking near the mid-20s among the largest digital currencies by market value. PYUSD slipped several positions lower despite its backing from a global fintech brand. Holder data underscored the divergence. USD1 reported nearly 583,000 holders compared with about 101,000 for PYUSD. Circulating supply figures showed full issuance for both tokens, which placed market cap differences squarely on adoption rather than token mechanics. Eric Trump Confirms the Milestone Eric Trump, executive vice president of the Trump Organization and co-founder of World Liberty Financial, confirmed that USD1 surpassed PYUSD in market capitalization. He described the move as a major milestone for the project and framed USD1 as an emerging digital dollar platform. His comments drew attention to the growing influence of politically linked crypto ventures within a sector long dominated by fintech and exchange-issued stablecoins. Lending Integration Fuels USD1 Demand World Liberty Financial expanded USD1’s utility by pushing the token into crypto lending markets. The firm launched World Liberty Markets, an onchain borrowing and lending platform built around USD1 and the WLFI governance token. Users can post collateral such as Ether, tokenized Bitcoin, and major stablecoins like USDC and USDT. The platform supports both lending and borrowing within a single marketplace, increasing transactional demand for USD1. Company executives said they plan to add more collateral types over time, including tokenized real-world assets. They also confirmed discussions with exchanges, prediction markets, and real estate platforms. These steps place USD1 at the center of onchain credit flows rather than limiting it to payments alone. Regulatory Shifts Reshape Stablecoin Incentives Regulatory developments also played a role in USD1’s rise. Changes linked to the GENIUS Act reshaped how stablecoin issuers and exchanges structure incentives. While issuers face limits on direct interest payments, exchanges have expanded reward programs tied to trading and usage. Binance initiatives, including booster-style programs, supported USD1 liquidity and visibility across global markets. The regulatory environment encouraged exchange-based adoption while favoring stablecoins that integrate easily into trading, lending, and treasury workflows. That structure helped USD1 scale faster than fintech-issued alternatives focused primarily on payments. Banking Ambitions Add a New Dimension World Liberty Financial recently applied for a U.S. national trust bank charter through its subsidiary, World Liberty Trust Company. The firm aims to issue and custody USD1 under a regulated banking framework designed specifically for stablecoin operations. Executives said the structure would support zero-fee conversion to U.S. dollars at launch and broaden USD1’s role in cross-border payments and treasury management. Industry leaders took note. BitGo CEO Mike Belshe said his firm supported USD1’s growth past $3.3 billion and plans to continue as a strategic partner as the trust bank effort moves forward. Stablecoin Competition Enters a New Stage Historical data shows no prior case of a family-linked stablecoin surpassing a major fintech-backed digital dollar in market size. USD1’s rise now raises broader questions about how politics, regulation, and onchain finance intersect. As USD1 expands across lending, exchanges, and regulated banking ambitions, the stablecoin market appears to be entering a new competitive phase.
