Rising Star: USD1’s Rapid Growth

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Early this year, WLF first announced its plan to launch USD1, a stablecoin aimed at institutions. USD1 is pegged 1:1 to the US dollar, backed by reserves of cash, US Treasury bonds, and equivalents. The assets are custodied by BitGo, and the accounting firm Crowe LLP issues monthly reserve attestation reports. Folks in the industry generally see it as pretty transparent and trustworthy. In early March this year, USD1 officially launched with an initial supply of $3.5 million. As of now, its market cap has soared past $2.7 billion, landing it in seventh place among stablecoins.

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USD1 has been turning heads since day one, and in recent months, it's really taken off thanks to its strong backing. USD1 is almost entirely issued on the BNB Chain. According to BscScan data, the supply of USD1 on the BNB Chain has hit $2.1 billion, making up over 99% of its total circulation. On the other hand, Etherscan shows the Ethereum version only at $14.5 million. After that, major chains with high trading volumes, like Tron, have rolled out USD1 to meet the on-chain demand. In just a few short months, USD1 has popped up in various on-chain ecosystems and got listed on major exchanges like Binance, Bitget, and Bybit.

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USD1’s speedy expansion wouldn’t have happened without the big push from exchanges. Binance led the way in April by listing USD1, and then PancakeSwap jumped in with promotions to boost visibility. That sparked a wave of related memecoins hitting the market fast—like $B, which smashed $400M in just ten days, kicking off another mini-boom on the BNB Chain. Bitget and Bybit followed suit in June and July, listing USD1 and rolling out airdrops and reward programs to amp up liquidity and open doors for more users.

Political Vibes: The Off-Market Drama Around USD1

While folks are checking out USD1’s product design, users are also super curious about its political backstory. As everyone knows, USD1 comes from WIF, and behind WIF is the red-hot Trump family. So, one of USD1’s biggest standout features is its tight tie-in with the Trump family, which might explain why it has such killer market pull—even getting Abu Dhabi’s investment fund MGX to scoop up about $2 billion in USD1 for a stake in Binance. With the Trump family’s connections plus backing from international capital, USD1 started off in a league of its own compared to most other stablecoins.

But as USD1’s circulation exploded, more everyday people and even politicians started questioning if the Trump family is using their political clout for business gains. For example, several senators on the US Senate Banking Committee have sent open letters to regulators, demanding a review of USD1’s compliance and potential conflicts of interest. They figure that if the presidential family is profiting directly from stablecoin ops, it could seriously mess with the regulators’ independence.

Actually, these worries aren’t just pulled out of thin air. Back in January, the buzz around the memecoin $TRUMP sparked similar doubts. At the time, that token was seen as a possible way to skirt campaign finance rules, turning into a shady channel for the Trump family to rake in non-transparent returns or even political bribes. Sure, USD1 and the Trump coin are worlds apart in purpose and setup, but they share a core issue: Is the Trump presidential family leveraging the crypto market for extra political or economic perks? Some media outlets have pointed out that USD1’s collab with Binance might involve more backroom deals, especially since Binance has been under the US regulators’ microscope for ages, and yet they’re going all-in on promoting USD1. The general fear is that this could turn stablecoins into tools for political rent-seeking, further undermining regulatory efficacy and social equity.

Right now, the US Congress is pushing for new stablecoin laws and more regulation rules on crypto assets. Whether USD1 can snag and hold onto compliant status will straight-up shape its long-term development. Especially in this bipartisan tug-of-war, some lawmakers might slap special limits on the Trump family running crypto businesses. As the industry bellwether, USD1 faces heightened political uncertainty and compliance exposure.

Even with all the debates swirling, USD1 is still giving crypto investors more options for trading mediums and creating a smoother market vibe, which is why it’s gaining more fans. FinTax is keeping up with market needs and just rolled out another tech upgrade, becoming the world's first crypto tax suite with native USD1 integration. It'll bring a top-notch crypto asset tax management experience to individual and institutional investors using USD1.

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