USD1 and the Stablecoin War: A Missile in the Cryptosphere

Launched in early March by World Liberty Financial, USD1 has disrupted the established order of stable currencies.

Donald Trump dislikes bombs, prefers customs tensions, enjoys power struggles with his own officials, and delivers bellicose speeches abroad. He wields confrontation like a trademark. In the crypto industry, the former American president is also waging his own campaign: that of stablecoins. For $1, he orchestrates a digital monetary war mixing political ambitions, geopolitical influence, and economic cannibalism.

Launched in early March by World Liberty Financial, USD1 has disrupted the established order of stable currencies. It went from $128 million to $2.2 billion in capitalization in two months, surpassing FDUSD, PYUSD, and Tether Gold. While USDT and USDC maintain their lead, USD1 is already ranked 7th worldwide. Its rise was catalyzed by the announcement of a $2 billion investment from MGX, linked to Eric Trump, into Binance via USD1.

The stablecoin is not just a publicity stunt: it is almost exclusively issued on the BNB Chain, highlighting a strategic anchoring in Binance’s crypto ecosystem. “USD1 provides what anonymous crypto projects cannot: a credible and compliant DeFi integration,” says Zach Witkoff, co-founder of WLFI.

HTX (formerly Huobi), close to Justin Sun, was one of the first to list it, offering fee-free withdrawals. On DEXs like PancakeSwap, demand is exploding.

In this stablecoin war, the Trump effect is working: a positionning strategy, media blitzing, and lightning-fast acceleration. It’s no longer just a token; it’s a flag.

This opens a new chapter in the "Trump narrative" within the crypto sphere, usually focused on Bitcoin. But here, the spotlight is on a stablecoin in an installment of the broader tale of American influence in a globalized and integrated financial system.

The choice of the BNB Chain as the main vector raises questions about Chinese-American affinities, especially considering Binance is often targeted by regulators. Trump and Binance both denied any collusion, but the connections between WLFI, BNB, and MGX are intriguing.

On its own, MGX, a fund from Abu Dhabi, triggered a speculative wave by investing massively in USD1. WLFI, which has raised $550 million since October, attracts global capital. Justin Sun increased his stake to $75 million in January. And according to V1PS’ founder, 90% of WLFI investors come from abroad: Europe, Asia, Latin America. The United States? Barely a minority.

This phenomenon reflects a globalized crypto world but in the hands of a few powers. At the White House, Trump simultaneously pushes for a “strategic Bitcoin reserve” and legislation favorable to stablecoins. He thus uses crypto not only as an economic lever but also as a diplomatic tool.

A blockchain version of soft power where the war is waged through financial infrastructure.

In a context of rising BRICS and the de-Americanization of trade, USD1 stands as a bulwark against dedollarization. Backed by treasury bonds, USD cash, and liquid assets, it distinguishes itself from algorithmic models. BitGo handles custody. Audits are carried out by third parties. It is a product designed for institutions, with explicit compliance.

USD1 enters with institutional design, rigorous compliance, and real anchoring.

The stablecoin promises international usability, notably in DeFi and cross-border transactions. Unlike others, USD1 does not play vague or anonymous. It targets serious actors: banks, funds, multinationals.

This is evident in the partnerships formed: Chainlink for oracles, DeepChain for liquidity, and AnChain for anti-fraud measures. Each integration serves a specific purpose within the broader institutional framework that USD1 is building.

The Trump administration is also involved in this project. Several officials, including those from the Treasury Department and the Securities and Exchange Commission, are following the development of USD1 closely. Their feedback and guidance are crucial in ensuring the stablecoin's legal and regulatory compliance.

The goal is clear: to create a viable and attractive alternative to existing stablecoins while navigating the legal and political landscape effectively.

While Ripple, PayPal, Gemini, or Circle battle to impose their own stablecoins, Trump advances covertly. He offers a digital version of the dollar crafted for influence, intended for states, banks, and global platforms. It’s not just a stablecoin; it’s a weapon for the reconquest of the dollar.