Trump-Backed USD1 Breaks Into the Top Five Stablecoins

USD1, the stablecoin issued by World Liberty Financial, a crypto company co-founded by members of the Trump family, has rapidly climbed the stablecoin rankings. The token’s market capitalization has reached nearly $5 billion, allowing it to overtake PayPal’s PYUSD and DAI and secure a position as the fifth-largest stablecoin in the market.

Eric Trump, son of President Donald Trump and a co-founder of World Liberty Financial, publicly celebrated the milestone. In a social media post, he described USD1’s growth as more than a crypto achievement, framing it as part of a broader transformation of global finance and digital dollars.

Growth Fueled by Treasury Decisions and Controversy

USD1’s expansion follows World Liberty Financial’s decision to approve a proposal allowing part of its unlocked treasury holdings to be invested in support of the stablecoin’s growth. The move has drawn criticism from some observers in the crypto community, who argue that the governance process behind the vote was deeply flawed.

According to DeFi², wallets linked to WLFI’s team and strategic partners dominated the vote, effectively steering the outcome. The criticism centers on claims that the proposal redirects protocol revenue toward the Trump family and the Witkoff group, as outlined in the WLFI Gold Paper. Critics argue that this came at the expense of token holders whose assets remain locked, raising concerns about fairness and transparency in the project’s governance.

Still Far Behind Stablecoin Market Leaders

Despite its rapid rise, USD1 remains small compared to the dominant players in the stablecoin sector. Tether’s USDT and Circle’s USDC continue to control the vast majority of the market, together accounting for more than 82% of the roughly $313 billion total stablecoin capitalization.

Behind them sit USDS, an upgraded version of DAI, and USDe from the Ethena protocol. While USD1’s ascent into the top five marks a notable development, it still faces a significant gap in scale and adoption compared to the long-established leaders of the stablecoin market.