- Donald Trump’s World Liberty Financial (WLFI) stablecoin, USD1, is being used for a $2 billion investment by Abu Dhabi-based MGX into Binance.
- USD1’s market cap has surged to over $2.1 billion, reaching this milestone faster than other major stablecoins, despite not being listed on major exchanges.
- Industry observers anticipate that new listings for USD1 on top exchanges could substantially alter the ranking of leading stablecoins.
World Liberty Financial (WLFI)’s new stablecoin, USD1, has been chosen as the settlement currency for a $2 billion investment by Abu Dhabi-based MGX into leading crypto platform Binance. The announcement came from WLFI co-founder Zach Witkoff at the Token2049 conference in Dubai.
WLFI revealed that USD1’s role in this major financial agreement marks a significant achievement for the digital asset, which quickly climbed to a valuation of $2.1 billion even though it is not currently listed on major centralized crypto exchanges. Witkoff described this partnership as a sign of trust in USD1’s stability, noting, “We thank MGX and Binance for their trust in us.” At the same event, Eric Trump highlighted the potential for digital assets such as USD1 to reduce dependence on traditional financial institutions and less trustworthy currencies.
The $2 billion deal between MGX and Binance represents the largest funding to be settled using a stablecoin, according to WLFI. The recent valuation milestone was celebrated online by Witkoff, with custody provider BitGo describing USD1’s market rise as the fastest in stablecoin history. The stablecoin has reached a supply of over 2.1 billion units in circulation.
BitGo has played an important role by providing infrastructure and support for USD1’s expansion. The asset was initially developed on Ethereum and Binance Smart Chain (BSC), and is planned to launch on the Tron network as well, following a $75 million investment from Tron’s founder, Justin Sun.
USD1’s rapid success has raised questions about the future landscape of the stablecoin market. Although the coin’s growth has been impressive, it still trails behind the dominant stablecoin, Tether’s USDT, which currently has a valuation of $149.3 billion and controls most of the stablecoin share on the Tron blockchain. USDT leads with an estimated 98.5% share, while competitors such as USDD, TUSD, and USDC account for much smaller portions.
USD1 has yet to secure listings on major platforms like Binance and Coinbase, but experts and industry observers suggest that such moves could boost its liquidity and further impact the overall stablecoin market structure. For now, the market is closely monitoring USD1’s progress as it continues to expand its reach.
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