Trump-Backed USD1 Stablecoin Explodes to $5B in Less Than a Year

USD1 just reached a $5B market cap.

Built in America, designed for real-world scale, and adopted by serious institutions.

This is what happens when you focus on infrastructure over noise. @worldlibertyfi pic

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The move immediately drew political scrutiny. Senator Elizabeth Warren urged the OCC to halt its review, citing concerns over the project’s ties to former President Donald Trump. The OCC responded by stating that World Liberty’s application would be evaluated under the same standards as any other filing.

World Liberty co-founder Zach Witkoff has defended the application, arguing that a national trust bank would build on USD1’s rapid growth and provide a stronger regulatory foundation for future expansion.

Security Concerns Add Another Layer

Warren has also raised alarms about USD1’s connection to PancakeSwap, a decentralized exchange where the stablecoin is actively traded. She previously warned the Treasury Department that the platform has been linked to illicit fund flows, questioning whether the partnership could pose national security risks.

World Liberty maintains that its operations remain compliant and that USD1’s growth reflects legitimate market demand rather than political backing.

As USD1 continues its climb, it now sits at the center of both market excitement and regulatory debate. Its rise highlights how quickly politically linked crypto projects can scale, but also how fast they can attract scrutiny as they push deeper into the financial system.

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FAQs

How did USD1 grow so fast compared to other stablecoins?

Its growth was driven by new lending products, treasury-backed issuance expansion, and early institutional interest boosting liquidity.

What regulatory concerns surround USD1 right now?

Lawmakers have questioned its banking ambitions and DeFi exposure, though regulators say it’s being reviewed like any other applicant.

Does USD1 pose risks to users or the crypto market?

Like all stablecoins, risks include regulation and platform exposure, but USD1 claims compliance and demand-driven growth so far.