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Trump-Linked USD1 Stablecoin Gains $150M After Binance Yield Program Announcement
Summary:
The USD1 stablecoin, associated with former President Donald Trump’s family, saw a $150 million market cap surge following Binance’s yield program offering up to 20% APR. This development comes as USD1 becomes the seventh-largest stablecoin globally, while raising questions about potential conflicts of interest between Binance and the Trump organization. The token’s growth is part of a broader $802 million crypto venture by the Trump family in 2025.
What This Means for You:
- Yield Opportunity: Binance’s 20% APR promotion (until Jan 2026) presents short-term gains for large USD1 holders (>$50k deposits)
- Market Watch: USD1’s rapid growth suggests increasing stablecoin competition, potentially impacting USDC/USDT dominance
- Regulatory Risk: Political scrutiny may increase as Senator Murphy already raised conflict-of-interest concerns
- Caution Advised: The Bloomberg report about Binance’s alleged involvement in USD1 development remains unresolved
Original Post:
The World Liberty Financial USD (USD1) stablecoin linked to the family of US President Donald Trump gained $150 million in market capitalization on Wednesday after Binance announced a yield program centered around the token.
The stablecoin’s market capitalization climbed from $2.74 billion to $2.89 billion on Wednesday after Binance announced its “booster program,” offering up to 20% annual percentage rate (APR) on USD1 flexible products for deposits exceeding $50,000.
The “first promotion” was designed to “help USD1 holders to maximize their rewards” and runs until Jan. 23, 2026, with passive yield for the bonus tiered APR distributed directly in Binance users’ earn accounts daily, according to the announcement.
The USD1 stablecoin is part of the Trump family’s growing crypto ventures, which reportedly generated about $802 million in income in the first half of 2025.
Related: Justin Sun urges Trump-linked WLFI to unlock ‘unreasonably’ frozen tokens
USD1 soars to become seventh-largest stablecoin
Binance has been launching increasingly more products, making USD1 a growing part of its ecosystem.
On Dec. 11, the exchange expanded support for the USD1 stablecoin by adding fee-free trading pairs for the leading cryptocurrencies and said it would convert all collateral assets backing its Binance USD (BUSD) stablecoin into USD1 at a 1:1 ratio.
In May, USD1 was used to settle MGX’s $2 billion investment into Binance Exchange, according to an announcement by Eric Trump during a panel discussion at Token2049 in Dubai.
Related: Trump-linked WLFI invests $10M in Falcon Finance for stablecoin development
The increasing ecosystem implementations from the world’s biggest exchange have been part of the stablecoin’s climb to become the seventh-largest stablecoin by market capitalization in the world, trailing PayPal USD (PYUSD).
However, some questions remain unanswered regarding the ties between Binance and WLFI, as a July Bloomberg report suggested that Binance was responsible for developing some of the code behind USD1, citing anonymous sources familiar with the matter.
In response to the article, Binance founder Changpeng Zhao claimed that it contained factual errors, and teased that he might “sue them again for defamation.”
Lawmakers have also raised concerns about the alleged relationship. In October, Connecticut Senator Chris Murphy said Binance.US, a separate legal entity of the exchange, was “promoting Trump crypto,” a week after Trump “pardoned Binance’s owner.”
Extra Information:
- SEC Stablecoin Guidance – Regulatory framework affecting USD1’s operations
- Federal Reserve Stablecoin Research – Central bank perspective on stablecoin growth
- Chainalysis Stablecoin Report – Market trends and competitor analysis
People Also Ask About:
- Is USD1 fully backed? USD1 claims 1:1 USD backing but hasn’t completed a third-party audit.
- How does Trump benefit from USD1? The Trump Organization receives licensing fees and holds a percentage of the reserve assets.
- What’s the risk of Binance’s 20% APR offer? Such high yields typically indicate customer acquisition costs rather than sustainable returns.
- Could USD1 replace BUSD? Binance’s BUSD-to-USD1 conversion suggests a strategic pivot toward politically-connected stablecoins.
Expert Opinion:
“The USD1 phenomenon represents a dangerous convergence of political influence and crypto economics,” says Dr. Sarah Bergman, MIT Digital Currency Initiative. “When a stablecoin’s growth appears tied to regulatory favors rather than technical merit, it undermines the decentralized ethos of cryptocurrency while creating systemic risk.”
Key Terms:
- Trump-linked stablecoin growth 2025
- Binance USD1 yield program risks
- Political stablecoin conflict of interest
- USD1 vs USDT market cap comparison
- Stablecoin regulatory scrutiny update
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{Grokipedia: Trump-Linked USD1 Stablecoin}
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