Trump’s USD1 Stablecoin Hits $5B Market Cap as Meme Coins Collapse

The Trump-branded stablecoin is climbing fast even as meme tokens tied to his name keep losing ground. World Liberty Financial’s USD1, a dollar-pegged token linked to US President Donald Trump’s family crossed a $5 billion market cap last week.

That puts it among the five largest stablecoins, according to live data, while the broader crypto market deals with a sharp sell-off in speculative coins. CoinGecko data show USD1 trading close to its $1 target, with about $2.6Bn in volume and a market cap near $5.0Bn on Saturday.

Importantly, a Wall Street Journal investigation has revealed that a secret deal signed in January 2025 gave an entity backed by UAE Sheikh Tahnoon bin Zayed Al Nahyan 49% stake in the Trump family’s crypto project. “The deal with World Liberty Financial, which hasn’t previously been reported, was signed by Eric Trump, the president’s son,” WSJ said. “At least $31 million was also slated to flow to entities affiliated with the family of Steve Witkoff, a World Liberty co-founder who weeks earlier had been named U.S. envoy to the Middle East.”

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Trump-Linked USD1 Stablecoin Seeks US Bank Charter for Federal Oversight

The token went live in March 2025. It was issued by the Trump-connected fintech startup. Furthermore, it was backed by cash and US money-market funds.

USD1 operates across several blockchains, including Solana, and is being pitched as a tool for cross-border payments and trading.

The company has also applied to open a federally supervised trust bank. That entity would manage issuance, redemption, and reserves. This would place the stablecoin’s central operations under direct US oversight.

WLF co-founder Donald Trump Jr. promoted USD1 on Wednesday, calling it a US-built payments asset designed for institutional-scale use.

In a post on X, Trump Jr. said the project is about building infrastructure, not chasing short-term market hype.

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.twitter.com/bdYfVxVi8J

— Donald Trump Jr. (@DonaldJTrumpJr) January 28, 2026

His comments came as World Liberty Financial applied to the Office of the Comptroller of the Currency for approval to set up a nationally chartered trust bank.

If regulators sign off, the proposed World Liberty Trust Company would handle USD1’s issuance and redemption, offer conversion services, manage custody, and hold reserves under direct federal oversight.

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How Did USD1’s Binance Ties Trigger Washington Alarm?

USD1 drew broader attention earlier this year after it was used in a reported $2Bn investment into Binance by Abu Dhabi-based sovereign wealth fund MGX. The transaction was said to be settled in USD1.

The deal triggered scrutiny in Washington. Senator Elizabeth Warren raised concerns about possible conflicts of interest tied to the transaction.

After MGX invested in the project and President Donald Trump granted a pardon to Binance founder Changpeng Zhao, USD1 was folded into Binance’s core systems last month.

Senator Elizabeth Warren later raised concerns with Treasury Secretary Scott Bessent and Attorney General Pam Bondi. She warned that USD1 could create national security risks.

In her letter, Warren pointed to USD1 trading on the decentralized exchange PancakeSwap.

She cited blockchain data that allegedly links about $263M in funds on the platform to North Korean laundering activity.

The letter also flagged a liquidity partnership between PancakeSwap and World Liberty Financial that was set up to support USD1 trading pairs.

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