Trump Family-Linked USD1 Market Cap Rises $150M Amid Binance Yield Offer

TLDR

• USD1 stablecoin’s market cap rose by $150M to $2.89B after Binance’s yield announcement.
• Binance added fee-free trading pairs for USD1 and converted all BUSD assets into USD1.
• The USD1 stablecoin is now the seventh-largest in the world by market cap.
• USD1 was used in a $2B investment from MGX into Binance in May.

The Trump family-linked USD1 stablecoin saw a $150 million boost in market capitalization following Binance’s announcement of a new yield program. The program, offering up to 20% APR on USD1 deposits over $50,000, has contributed to the token’s rapid growth. With Binance’s increasing support, USD1 is now the seventh-largest stablecoin, raising both interest and questions regarding its ties to Binance and the Trump family’s crypto ventures.

USD1 Stablecoin Sees $150M Market Cap Growth After Binance Yield Program

The market capitalization of USD1, the stablecoin linked to the Trump family, grew by $150 million after Binance launched a new yield program. The stablecoin’s market cap increased from $2.74 billion to $2.89 billion on Wednesday.

This boost in value follows Binance’s announcement of its “booster program,” which offers up to a 20% annual percentage rate (APR) on flexible USD1 products. The program is available for deposits exceeding $50,000 and will run until January 23, 2026.

Binance’s incentive aims to attract USD1 holders, offering them passive rewards distributed daily in their Binance accounts. The program is designed to provide USD1 users with greater returns on their holdings, aligning with the platform’s growing efforts to expand its use of the USD1 token.

Binance Expands Support for USD1 Stablecoin

Binance has significantly increased its support for USD1 by launching multiple products designed to integrate the stablecoin further into its ecosystem. On December 11, the exchange introduced fee-free trading pairs for USD1, allowing users to trade it against major cryptocurrencies without additional charges. This initiative aims to encourage more users to hold and trade USD1 on the Binance platform.

In addition, Binance announced that it would convert all collateral assets backing its BUSD stablecoin to USD1 at a 1:1 ratio. This conversion marks another step in Binance’s commitment to integrating USD1 into its broader offerings. These measures have played a pivotal role in boosting the market capitalization of USD1, helping it rise to become the seventh-largest stablecoin globally by market cap.

USD1’s Role in MGX Investment into Binance

USD1 has also played a key role in significant investments. In May, USD1 was used to settle a $2 billion investment from MGX into Binance. The deal, confirmed by Eric Trump at the Token2049 event in Dubai, is one of the largest investments in the Binance exchange.

USD1 was chosen for the transaction, reflecting the stablecoin’s growing role in high-value financial deals and its increasing integration into the Binance ecosystem.

This strategic use of USD1 in large-scale investments shows how the stablecoin has grown beyond just a simple trading asset. It is becoming an integral part of Binance’s financial activities, potentially increasing its visibility in both the crypto and traditional financial sectors.

Controversy and Alleged Binance Involvement with USD1

Despite its growing presence, USD1 has faced scrutiny regarding its ties to Binance. A Bloomberg report in July raised questions about the relationship between Binance and World Liberty Financial (WLFI), the company behind USD1. The report suggested that Binance played a significant role in the development of USD1’s code.

In response, Binance founder Changpeng Zhao denied the allegations, claiming that the article contained factual errors. He further hinted at potential legal action against Bloomberg for defamation.

Lawmakers have also expressed concerns over the nature of the connection between Binance and WLFI, especially in light of the Trump family’s involvement with the stablecoin. In October, Senator Chris Murphy from Connecticut pointed out that Binance.US had been promoting Trump-linked crypto ventures. This follows Trump’s pardon of Binance’s founder, which has added to the scrutiny surrounding the relationship between the exchange and the stablecoin.

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