The USD1 stablecoin, issued by World Liberty Financial (WLFI), has hit a new milestone following a significant increase in its market cap in the last 24 hours. This follows Binance’s launch of a yield promo for holders of the Trump-linked stablecoin.
USD1 Stablecoin Tops $3 Billion In Market Cap
CoinMarketCap data shows that the stablecoin’s market cap has increased by over 5% in the last 24 hours, crossing the $3 billion mark in the process. At press time, the stablecoin’s market cap stands at around $3.07 billion, making it the sixth-largest stablecoin and the 32nd-largest crypto asset by market cap.
WLFI, USD1’s issuer, commented on this milestone, describing it as a “big moment” for the team and the community. “But milestones aren’t the goal — building the future of financial rails is. And we are just getting started,” the team added.
Zach Witkoff, WLFI’s co-founder, also commented on the milestone, stating that it is just the beginning as they build the future of finance, with real-world adoption of their stablecoin. Zak Folkman, another co-founder, described it as an important milestone that reflects the stablecoin’s growing adoption across trading, payments, and on-chain liquidity. “While meaningful, this is only an early step in a much larger roadmap, he added.”
The USD1 stablecoin’s surge above a $3 billion market cap follows Binance’s launch of its ‘Booster Program’ for the stablecoin. The top crypto exchange announced that holders of the stablecoin would be able to enjoy up to 20% annual percentage rate (APR) through its flexible earn products.
The Binance-WLFI Relationship
The Booster program marks the latest support for the stablecoin from the largest crypto exchange by market share. Earlier this month, WLFI announced that Binance was expanding USD1 trading pairs on its exchange, including spot trading for BNB, Ethereum, and Solana.
Meanwhile, the exchange also announced that it will convert all collateral backing Binance-peg BUSD (B-Token) into USD1 at a 1:1 ratio. WLFI stated that the transition means its stablecoin will become an integral part of the exchange’s updated collateral structure, further embedding it within the exchange’s ecosystem.
It is also worth mentioning that earlier this year, Abu Dhabi-based MGX used the USD1 stablecoin to settle its $2 billion investment in Binance. These developments, including Trump’s pardon of Binance co-founder Changpeng “CZ” Zhao, have led to speculations, with the WSJ once claiming that CZ helped boost WLFI on his way to a pardon.
However, Binance U.S. once denied any wrongdoing, stating that its listings of USD1 and WLFI were “purely business decisions” and not political. Trump’s backing of WLFI and the alleged close ties with Binance were among the reasons the GENIUS Act faced objections from Democrats, including Senator Elizabeth Warren, before it eventually passed.
How USD1’s Adoption Could Boost The WLFI Token
WLFI team member Dylan recently explained how USD1’S adoption could boost the WLFI token, which is down amid the crypto market downtrend. In an X post, he stated that once the stablecoin establishes its position in the stablecoin market, the token will naturally gain numerous benefits.
He further remarked that any move by the stablecoin to stimulate WLFI may seem relatively weak. However, once the stablecoin attains a sufficiently large market share, every incentive it introduces will benefit WLFI.
Source: https://coingape.com/trump-linked-usd1-stablecoin-crosses-3b-market-cap-after-binance-rolls-out-20-yield/
