- World Liberty Financial‘s Trump-linked stablecoin, USD1, has surpassed a $5 billion market cap, becoming the fifth-largest dollar-pegged cryptocurrency less than a year after its launch.
- The token’s rise follows its integration into Binance and a pending national trust bank charter application, even as Senator Elizabeth Warren warned of national security risks.
- The official Trump (TRUMP) meme coin has collapsed over 93% from its peak, with insiders having extracted more than $800 million before its decline.
- The broader stablecoin sector has grown to a $312 billion market following the passage of the GENIUS Act, creating a new federal regulatory framework.
A Trump-linked stablecoin has surged past a $5 billion market capitalization in under a year, while the President’s official meme coin has crashed over 94% from its peak. This shift highlights a pivot toward institutionally-friendly, yield-bearing stablecoins in early 2026.
According to CoinGecko data, World Liberty Financial‘s USD1 became the fifth-largest stablecoin this week. However, the Solana-based Official Trump (TRUMP) meme coin is now trading at $4.66.
“Built in America, designed for real-world scale, and adopted by serious institutions,” co-founder Donald Trump Jr. tweeted. Consequently, the firm applied to form a national trust bank under federal supervision.
USD1 first gained prominence after a $2 billion investment in Binance was paid using the stablecoin. Meanwhile, Senator Elizabeth Warren warned that USD1 could pose national security risks, citing blockchain data showing $263 million in North Korea-linked laundered funds on PancakeSwap.
“Utility is starting to win over pure hype,” CoinStats CEO Narek Gevorgyan told Decrypt. He noted that insiders extracted over $800 million from the TRUMP token before its credibility collapsed.
Lawmakers previously raised concerns that the Trump Organization controlled 80% of the meme coin’s supply. Consequently, researchers describe the token’s decline as part of a wider memecoin phenomenon, not specific to politics.
The total U.S. dollar stablecoin supply now stands at $312 billion. Users on prediction market Myriad see just a 2% likelihood the sector’s market cap will surpass $360 billion before next month.
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