January 23, 2026
Finance

World Liberty Financial's Stablecoin USD1 Surpasses PayPal's PYUSD Amid Expanding Crypto Ecosystem

Eric Trump Highlights Significant Growth of USD1 Token Backed by Trump Family Holdings

Loading...
Loading quote...

Summary

World Liberty Financial's stablecoin USD1, significantly supported by the Trump family, has reportedly outpaced PayPal's PYUSD stablecoin in market cap and trading volume. The development coincides with Binance's announcement of a substantial token airdrop initiative aimed at USD1 holders. The project faces scrutiny over alleged foreign ties, which have been publicly denied by company representatives.

Key Points

USD1 stablecoin by World Liberty Financial has surpassed PayPal's PYUSD in trading volume and market capitalization.
Binance has launched a $40 million WLFI token airdrop incentivizing USD1 holders, including additional bonuses for collateralized holdings.
The Trump family controls 60% of World Liberty Financial and is entitled to 75% of all revenue from coin sales, highlighting their major involvement.
U.S. Senators have raised concerns over alleged foreign ties in token sales by World Liberty Financial, which have been denied by company representatives.

Eric Trump, a co-founder of American Bitcoin Corp. and stakeholder in World Liberty Financial, recently shared an update emphasizing the rapid expansion of USD1, a stablecoin issued by the decentralized finance (DeFi) platform World Liberty Financial. The stablecoin has reportedly grown to exceed PayPal Holdings Inc.'s PYUSD stablecoin in several key metrics, a milestone Trump described as indicative of evolving trends in the digital currency landscape.

In a public social media post, Eric Trump remarked, “The shift is happening,” underscoring the significance of USD1's gains relative to established financial technology players. He emphasized this moment as a major step forward for World Liberty Financial's stablecoin initiative, which is strongly affiliated with the Trump family through ownership and revenue stakes.

Binance Incentivizes USD1 Holdings with $40 Million WLFI Token Airdrop

Amplifying momentum around the USD1 token, Binance—the largest cryptocurrency exchange worldwide—revealed on a recent Friday a $40 million airdrop of WLFI tokens targeted at USD1 stablecoin holders. This promotional event is scheduled to run from the announcement date through February 20. Users maintaining USD1 in their Spot, Funding, Margin, or Futures accounts on Binance are eligible for weekly token distributions.

Furthermore, Binance plans to implement a bonus multiplier of 1.2 times on token rewards for participants who hold USD1 as collateral, thereby encouraging higher engagement and locking liquidity within the system. This strategic incentive aligns with efforts to boost user participation and deepen the stablecoin's market presence through exchange partnerships.

Trump Family's Substantial Involvement in World Liberty Financial

World Liberty Financial operates out of Wilmington and functions as a decentralized finance platform focusing on stablecoin issuance and related services. Distinctively, the company has a strong connection to the Trump family, with a Trump-affiliated business entity possessing a 60% ownership stake alongside contractual rights to 75% of all revenue generated from coin sales.

Eric Trump is acknowledged as a co-founder of this venture, which recently pursued a national trust bank charter, signaling ambitions to expand its traditional financial services footprint. This ownership and governance structure underscores the Trump family's deep financial and operational involvement in World Liberty Financial's stablecoin project.

Critique of Traditional Banking and Crypto Legislation Resistance

Beyond his executive role, Eric Trump has voiced critical perspectives regarding the broader financial system. He has accused major banking institutions of obstructing cryptocurrency-related legislation, reflecting broader tensions between decentralized financial innovations and established banking interests.

His statements emphasize a belief in a transformative period within the financial services sector, where emerging digital assets and blockchain technologies challenge conventional banking models and regulatory frameworks.

Legal and Security Concerns Raised by U.S. Senators

Despite enthusiasm around the project, World Liberty Financial has faced scrutiny from U.S. lawmakers. In November, Senators Elizabeth Warren of Massachusetts and Jack Reed of Rhode Island called for federal investigations into the company based on allegations that its token sales involved businesses affiliated with North Korea and Russia. These concerns were framed as potential threats to national security due to foreign ties.

Eric Trump has publicly repudiated these claims, dismissing them as “absolutely laughable” and asserting that the company maintains thorough knowledge of all token purchasers. This dispute highlights ongoing challenges DeFi platforms face relating to regulatory oversight and geopolitical risks.

Market Performance Metrics for USD1 and PYUSD

Financial data from a recent Friday closing session offers a comparative snapshot of USD1 against PayPal's PYUSD stablecoin. USD1 had a closing price of approximately $0.9999, closely aligned with PYUSD's $0.9994. However, USD1 exhibited a substantially larger 24-hour trading volume at $6.23 billion compared to PYUSD’s $188.38 million, indicating more significant market activity.

The market capitalization of USD1 reached $4.4 billion, surpassing PYUSD's valuation of $3.75 billion. These figures suggest USD1 has achieved notable growth and liquidity, setting it apart in the competitive stablecoin environment.


Disclaimer: Parts of this content were generated with the assistance of AI tools and subsequently reviewed by editors to ensure accuracy. The information provided is for informational purposes and should not be considered investment advice.

Risks
  • Ongoing investigations by U.S. Senators into possible ties between World Liberty Financial's token sales and foreign entities linked to North Korea and Russia.
  • Potential regulatory scrutiny due to the company’s application for a national trust bank charter and its DeFi business model.
  • Criticism of traditional banks potentially leading to legislative challenges impacting cryptocurrency adoption and operations.
  • Market volatility inherent in the cryptocurrency and stablecoin sectors that could affect token values and trading volumes.
Disclosure
Education only / not financial advice
Search Articles
Category
Finance

Financial News

Ticker Sentiment
PYPL - neutral
Related Articles
Treasury Secretary Highlights Urgency for Crypto Regulatory Clarity Amidst Coinbase Opposition

In light of recent fluctuations in cryptocurrency markets, U.S. Treasury Secretary Scott Bessent emp...

Ripple Joins Forces with UAE Digital Bank Zand for Stablecoin Integration Amid XRP Decline

Ripple has announced a partnership with UAE-based digital bank Zand to collaborate on stablecoin ini...

XRP's Market Prospects in 2026: Assessing the Path Toward $1

The cryptocurrency sector is experiencing significant downturns at the beginning of 2026, with XRP, ...

Robinhood Reports Q4 Revenue Peak and Expands Market Contracts to 8.5 Billion

Robinhood Markets Inc. delivered a notable fourth-quarter performance with record revenue of $1.28 b...

Significant Declines in Dogecoin and Shiba Inu Prompt Technical Analysis on Key Support Levels

Dogecoin and Shiba Inu experienced notable price drops recently, with both cryptocurrencies losing g...

Cryptocurrency Market Holds Steady Amid Anticipation of US-Iran Developments

The cryptocurrency market demonstrates a cautious stance as Bitcoin approaches the $69,000 mark. Oth...