Overview
USD1 is a dollar stablecoin issued by World Liberty Financial (WLFI), a crypto company linked to the Trump family; an entity affiliated with President Donald Trump owns a large stake in it. USD1 launched in spring 2025.
USD1 grew quickly after MGX, an investment firm from Abu Dhabi, used it to pay for a $2 billion investment in Binance in May 2025. Binance then added USD1 trading pairs and promotions. By October 2026, about $3.9 billion of USD1 was in circulation.
How it works
- USD1 is backed by short-term US Treasuries, dollar deposits and cash equivalents, held with the custodian BitGo.
- Approved partners can create and redeem USD1 for dollars.
- It runs on Ethereum and BNB Chain, among others.
The USD1 token
| USD1 at a glance | |
|---|---|
| In circulation (Oct 2026) | about $3.9 billion |
| Target value | $1.00 |
| Launched | 2025 |
| Market cap | about $3.9 billion (#30) |
World Liberty Financial also has its own governance token, WLFI, reviewed separately.
Risks
- Concentration. In February 2026, an analysis found that Binance held about 87% of all USD1. If Binance’s role changed, demand could fall quickly.
- Political ties. The Trump family’s financial interest in WLFI raises conflict-of-interest concerns, especially while the US writes stablecoin rules.
- Short history. USD1 hasn’t been tested through a severe crisis.
- Regulation. Like all stablecoins, it must adapt to the US GENIUS Act rules taking effect in 2027.
USD1 vs. the competition
| USD1 | USDC | USDT | |
|---|---|---|---|
| Issuer | World Liberty Financial | Circle | Tether |
| Reserves | T-bills, cash | Cash, T-bills | T-bills, BTC, gold, loans |
| Main venue | Binance | Many | Many |
| Track record | Since 2025 | Since 2018 | Since 2014 |
Our verdict
USD1’s reserves look conventional and safe on paper, and it has grown fast with Binance’s support. But its supply is heavily concentrated, its political ties are unusual for a stablecoin, and its record is short. USD1 is a tool, not an investment; most users may prefer longer-established stablecoins for holding larger amounts.
This review is for information only and is not financial advice.