Trump-Backed USD1 Hits $5B Market Cap Amid World Liberty Bank Drama

World Liberty Financial’s stablecoin, USD1, has surpassed the $5 billion mark in market cap. This makes the USD-pegged coin the fifth-largest stablecoin in the market. It also comes in the middle of the debates surrounding the WLFI bank.

USD1 Becomes Fifth Largest Stablecoin

The Trump-linked stablecoin has achieved a market capitalization of over $5 billion in less than a year. Its market cap has now passed that of PayPal’s PYUSD, which is valued at $3.75 billion. The stablecoin is currently ranked among the top 25 cryptocurrencies globally, according to CoinMarketCap data.

Co-founder of World Liberty Financial, Donald Trump Jr., highlighted the update in a post on X on Wednesday. He praised the stablecoin’s recent growth. He also noted that it is being adopted rapidly by institutions.

The USD1 growth comes as the issuer firm continues deploying strategies to boost its visibility. Earlier in January, the firm had announced the launch of a new platform dubbed ‘World Liberty Markets.’ The new platform will enable users to borrow digital assets using the WLFI stablecoin, as well as other primary tokens such as USDC, USDT, and tokenized bitcoin.

Also, the World Liberty team launched a proposal that would see them use a portion of their treasury to boost the supply of the stablecoin. These proceedings were conducted through a governance vote among its community members.

Another development boosting the stablecoin’s momentum is its upcoming plan to launch a range of real-world assets products. The firm intends to back the products with USD1 as collateral.

World Liberty Bank Debate Continues

Earlier this month, WLTC Holdings LLC filed an application with the Office of the Comptroller of the Currency (OCC) to establish a national trust bank that specializes in stablecoin issuance.

Not long after, Senator Elizabeth Warren publicly wrote to the OCC telling them to stop its review of the World Liberty Bank application. The basis of her argument was its ties to the President. The OCC Comptroller wrote back almost immediately statinng that the body would  attend to the filing as it would other applications.

According to Zach Witkoff, a co-founder of World Liberty, the application is to build on the momentum of USD1 as it has grown the fastest out of any stablecoin in history.

Also, Warren expressed another concern regarding the stablecoin’s link to the DEX Pankeswap. Last month, she expressed a concern to Treasury Secretary Scott Bessent that the stablecoin may pose a risk to the country’s security due to its trading on the decentralized exchange.

Pankeswap holds $263 million in North Korea laundered funds. The DEX has a liquidity partnership with World Liberty Financial for promoting the stablecoin pairs.