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USD1 stablecoin surges to a $2.2B market cap since March 2025, boosted by institutional adoption and now supported on Coinbase.
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Despite rapid growth, USD1 faces scrutiny over liquidity concentration and political ties to the Trump family, raising regulatory concerns.
Coinbase has officially listed World Liberty Financial’s USD1 stablecoin, granting the fast-growing token wider retail and institutional access. The move has fueled excitement about adoption but also sparked fresh debate around regulation and political ties.
Coinbase Expands USD1 Access
On August 21, Coinbase announced that users can now buy, sell, convert, send, and store USD1 through its app and website. The stablecoin will initially run as an ERC-20 token on Ethereum, with transfers supported on both Coinbase and Coinbase Exchange in approved regions.
Coinbase stressed its jurisdiction-based approach, noting that local regulations may limit availability in certain markets. To ensure transparency, the stablecoin’s Ethereum contract address has been made public.
The listing gained even more attention after Eric Trump, son of the U.S. President, reposted Coinbase’s announcement, highlighting the project’s political links. On the same day, World Liberty Financial minted $205 million in new USD1 tokens for its treasury, branding it “the fastest-growing stablecoin.”
Rapid Growth Since March
Launched in March 2025, USD1 has seen explosive growth, reaching a $2.2 billion market cap by late August, according to DeFiLlama data. This rapid rise puts USD1 ahead of rivals like FDUSD and PYUSD, making it the fifth-largest stablecoin globally.
The token’s success is partly driven by strong institutional adoption. Notably, it has attracted a $2 billion investment involving Binance and Abu Dhabi’s MGX fund. USD1 is fully backed by dollar deposits, cash equivalents, and U.S. Treasuries, with custody provided by BitGo Trust Company. To bolster credibility, the project undergoes monthly third-party audits and offers zero-fee minting and redemption.
USD1’s multi-chain support across Ethereum, Binance Smart Chain, and TRON has further expanded its reach in both DeFi and centralized markets.
Scrutiny Over Politics and Liquidity
Despite its momentum, USD1 has not escaped controversy. More than 50% of its supply is concentrated in just three wallets, raising concerns about liquidity risks and centralization. Critics argue that such concentration undermines the promise of a decentralized stablecoin ecosystem.
Political ties have also drawn scrutiny. The Trump family’s visible involvement has prompted lawmakers to question whether potential conflicts of interest could arise, especially given the stablecoin’s expanding role in financial markets.
For Coinbase, listing USD1 underscores its strategy of broadening stablecoin offerings while navigating the delicate balance between innovation and compliance. For World Liberty Financial, the listing marks another milestone in its push to challenge incumbents like USDT and USDC.
Whether USD1 continues its meteoric rise, or stumbles under regulatory and political pressure, remains to be seen. But with $2.2 billion in circulation and Coinbase’s stamp of approval, USD1 has firmly cemented itself as a stablecoin to watch.
