World Liberty Financial’s USD1 Surpasses $5 Billion in Market Value While TRUMP Meme Coin Falters

Trump-Associated Stablecoin Surges Past $5 Billion as Meme Coin Plummets

A stablecoin connected to Donald Trump has rapidly exceeded $5 billion in market value within its first year, while the President’s official meme coin has experienced a dramatic drop of over 94% from its highest point. This shift highlights a movement of capital toward stablecoins that offer yields and appeal to institutional investors.

World Liberty Financial’s USD1, a stablecoin backed by the U.S. dollar, recently reached a market capitalization above $5 billion, making it the fifth-largest stablecoin according to CoinGecko, despite being less than a year old.

In contrast, the Solana-based Official Trump (TRUMP) meme coin has plunged more than 93% from its peak price of around $75, now trading at just $4.66.

Donald Trump Jr., co-founder of World Liberty Financial, commented on social media, “Made in America, built for real-world adoption, and trusted by major institutions. This is the result of prioritizing infrastructure over hype.”

The rise of USD1 coincides with World Liberty Financial’s application to the U.S. Office of the Comptroller of the Currency to establish a national trust bank.

If granted, the new World Liberty Trust Company would oversee the issuance, redemption, conversion, custody, and reserve management of USD1, all under direct federal oversight.

Scrutiny Surrounding USD1

USD1 first attracted significant attention when it was used by Abu Dhabi’s sovereign wealth fund MGX for a $2 billion investment in Binance, with the transaction conducted in USD1. This move prompted questions from U.S. lawmakers, including Senator Elizabeth Warren, over possible conflicts of interest.

Addressing the controversy, Binance founder Changpeng Zhao told CNBC that the deal had been misunderstood, explaining that MGX opted for USD1 and that he preferred cryptocurrency payments to avoid dealing with banks.

After the MGX investment and following Changpeng Zhao’s presidential pardon, USD1 was integrated into Binance’s main infrastructure last month.

Senator Warren recently cautioned Treasury Secretary Scott Bessent and Attorney General Pam Bondi that USD1 might pose national security threats, referencing its trading on PancakeSwap—a decentralized exchange where blockchain analysis revealed $263 million in funds linked to North Korea had been laundered. PancakeSwap also partnered with World Liberty Financial to boost USD1 trading pairs.

TRUMP Meme Coin Faces Steep Decline

Meanwhile, the TRUMP meme coin, which launched just before Trump’s second inauguration, has suffered a significant loss in value. “Utility is starting to win over pure hype,” said Narek Gevorgyan, CEO of CoinStats, commenting on the contrasting fortunes of USD1 and the TRUMP token.

Gevorgyan also pointed out that insiders withdrew over $800 million from the TRUMP token before its collapse, leaving behind a highly speculative asset with little remaining credibility.

Lawmakers have voiced concerns about the TRUMP token, citing potential conflicts of interest, foreign influence, and the risk of a “rug pull” once the token’s three-year lockup ends. Senator Warren noted in January 2025 that the Trump Organization controlled 80% of the token’s supply.

Peter Chung, research head at Presto Labs, told Decrypt that the decline in the TRUMP token reflects a broader downturn affecting meme coins in general, rather than being specific to Trump or political factors. He also noted that USD1’s recent growth is largely driven by offshore initiatives such as Binance rewards programs.

Stablecoin Sector Expands Under New Regulations

The stablecoin market has seen considerable growth since the GENIUS Act was enacted last year, establishing a federal regulatory framework for dollar-backed cryptocurrencies.

According to CoinGecko, the total supply of U.S. dollar stablecoins has reached $312 billion. On Myriad, a prediction market operated by Decrypt’s parent company Dastan, users estimate only a 2% chance that the sector’s market cap will exceed $360 billion before next month.