What could affect the price of USD1?
USD1’s dollar peg is being tested by regulatory challenges, competition, and liquidity concerns.
- Regulatory scrutiny – Political connections bring increased oversight, which could lead to higher compliance costs or restrictions.
- Stablecoin competition – Other stablecoins like C1USD, USDT, and USDC are strong competitors, making it harder for USD1 to grow.
- Cross-chain expansion – Adding support on Solana and TRON blockchains may boost usage but also risks splitting liquidity.
Deep Dive
1. Regulatory & Political Risks (Mixed Impact)
USD1 has close ties to the Trump family (Eric Trump on WLFI board) and received a $100 million investment from a UAE firm (Aqua1 Foundation). These connections have attracted attention from the U.S. Senate. The GENIUS Act, set to take effect in 2025, legalizes stablecoins but requires them to maintain a 1:1 reserve backing and undergo regular audits. USD1 meets these requirements, but its political ties could lead to stricter regulations or negative publicity that might affect its dollar peg.
What this means: While clearer rules help stablecoins overall, USD1’s political associations could lead to extra scrutiny or events that shake confidence in its stability.
2. Adoption vs. Rivals (Bearish Risk)
Kinesis, a platform that previously supported USD1, switched to C1USD in September 2025 (transition details). Meanwhile, USDT and USDC dominate the stablecoin market, controlling 83% of the $242 billion market. USD1’s market cap of $2.6 billion depends heavily on institutions linked to the Trump family, such as Abu Dhabi’s $2 billion Binance deal.
What this means: USD1’s appeal is mostly limited to politically connected groups. Without broader adoption, demand could stall, increasing the risk of liquidity problems during market downturns.
3. Multi-Chain Growth (Bullish Catalyst)
In the third quarter of 2025, USD1 expanded to support Solana and TRON blockchains, minting $100 million on Solana through the Raydium decentralized exchange (integration details). On the Binance Smart Chain (BNB Chain), daily trading volume reached $3.37 billion in July, although 80% of this volume came from incentive programs.
What this means: Expanding across multiple blockchains can improve liquidity and integration with decentralized finance (DeFi) applications. However, much of the current trading volume depends on rewards programs, which may not last, potentially weakening liquidity if incentives end.
Conclusion
USD1’s ability to maintain its dollar peg depends on balancing its political image with broader, neutral utility. Key events to watch include the September 22 completion of the C1USD migration and the Q4 unlock of 24.66 billion WLFI tokens. If many governance token holders sell their tokens, it could put pressure on USD1’s stability. The big question is whether USD1 can move beyond its political roots to become a widely accepted, neutral payment option or if regulatory challenges will limit its growth.
What are people saying about USD1?
World Liberty Financial USD (USD1) is gaining attention with new exchange listings and political connections, but it also faces regulatory challenges. Here’s what’s happening:
- Expanding across multiple blockchains – Integrations with Solana, TRON, and BNB Chain are helping more people use USD1.
- Connections to Trump family – This brings mixed reactions, with some investors interested and others concerned about control and influence.
- Growing DeFi use – USD1 is being used in decentralized finance (DeFi) for earning interest and lending.
- More exchange listings – New listings on OKX, CoinEx, and Upbit are increasing USD1’s availability and trading activity.
Deep Dive
1. Multi-chain stablecoin rollout is positive
The Spanish-language crypto account @CoinExSpanish shared that USD1 is a stablecoin backed by the U.S. dollar and recently got listed on several exchanges like CoinEx, OKX, and Upbit between September 1-8, 2025. This means USD1 is becoming easier to buy and sell on multiple platforms, which is good for its liquidity and adoption.
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2. Trump family ties bring mixed opinions
Crypto commentator @CryptoZeybek noted that USD1 has connections to the Trump family, which has attracted some investors who support the former president. However, others worry about the risks of centralization since the Trump family reduced their stake by 20% in July 2025. This means some people see potential, while others are cautious.
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3. DeFi yield strategies show promise
@lista_dao highlighted that you can borrow USD1, deposit it into platforms like SolvProtocol, and earn nearly 10% annual interest. This kind of use in decentralized finance is helping USD1 gain real-world utility. As of July 2025, about $20 million is locked in lending vaults using USD1, showing strong demand.
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4. Regulatory concerns create caution
@aixbt_agent pointed out risks, including the USD1 team moving $20 million to exchanges and an upcoming token unlock event. Additionally, U.S. Senator Elizabeth Warren is scrutinizing $100 million investments linked to the UAE, which adds regulatory pressure. These factors could negatively impact USD1’s price and reputation.
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Conclusion
Overall, the outlook for World Liberty Financial USD (USD1) is optimistic but with some caution. The growing number of exchange listings and DeFi partnerships show strong interest and use, with a trading volume of nearly $30 billion in July 2025 campaigns. However, investors should watch for potential regulatory actions from the SEC after upcoming elections and the token unlock scheduled for September 2025. Also, keep an eye on Bitcoin’s market dominance (currently 57.48%), as shifts there could affect demand for stablecoins like USD1.
What is the latest news about USD1?
World Liberty Financial USD (USD1) is navigating new regulations and changes in its ecosystem, balancing growing interest from institutions with increasing competition. Here are the key updates:
- Kinesis Adopts C1USD (September 5, 2025) – USD1 will be replaced by the insured stablecoin C1USD, raising questions about how users will switch over.
- GENIUS Act Legalizes Stablecoins (September 3, 2025) – Clearer regulations support USD1’s role in decentralized finance (DeFi) and institutional use.
- Justin Sun’s $200M Expansion (September 2, 2025) – Tron’s USD1 supply is growing, but volatility risks remain.
Deep Dive
1. Kinesis Adopts C1USD (September 5, 2025)
Overview: Kinesis Money plans to phase out USD1 and replace it with C1USD, a fully insured stablecoin offering a 7.5% annual yield. All USD1 balances will automatically convert to C1USD at a 1:1 ratio by late September 2025. This change is driven by naming conflicts and stricter regulatory requirements.
What this means: In the short term, this transition is neutral for USD1 since the switch is automatic and smooth. However, in the long term, C1USD’s attractive yield and insurance coverage may draw institutional users away from USD1. This shift highlights how competition among stablecoins can affect USD1’s market position.
(Kinesis Money)
2. GENIUS Act Legalizes Stablecoins (September 3, 2025)
Overview: The GENIUS Act establishes formal regulations for stablecoins, officially recognizing USD1 as a compliant asset suitable for DeFi, NFTs, and international payments. Additionally, GBeast’s integration of USD1 into meme coin communities shows growing cultural acceptance.
What this means: This is positive news for USD1, as clearer rules encourage more institutions to adopt it and expand its use beyond simple payments. However, USD1 still faces competition from politically neutral stablecoins like USDC.
(Phemex)
3. Justin Sun’s $200M Expansion (September 2, 2025)
Overview: Justin Sun has committed to increasing USD1’s supply on the Tron blockchain by $200 million, boosting liquidity. His recent $145 million purchase of WLFI tokens aligns with Tron’s $25 million USD1 minting efforts and partnerships with the U.S. Commerce Department on blockchain projects.
What this means: This expansion supports USD1’s use in Tron-based DeFi applications, which is a positive sign. However, investors should be cautious because WLFI tokens have experienced significant price swings (32% volatility) after unlocking, and there is active speculative trading in related derivatives.
(Bitget)
Conclusion
USD1 is gaining momentum thanks to clearer regulations and growing institutional interest. However, it faces challenges from competitors like C1USD, which offer higher yields and insurance. The big question remains: will C1USD’s financial incentives outweigh USD1’s established brand, especially given its political associations, in attracting long-term users?
What is expected in the development of USD1?
I wasn’t able to find useful information to answer this question at the moment. The CoinMarketCap team is continuously updating my crypto knowledge, so if any important details become available, I should have them soon. Meanwhile, please feel free to choose another question or cryptocurrency for analysis.
What updates are there in the USD1 code base?
USD1’s technology is evolving to support multiple blockchains and integrate with decentralized finance (DeFi) platforms.
- Launch on Solana (September 1, 2025) – USD1 is now available on the Solana network, offering faster transactions and access to a wider range of apps.
- Added to JustLendDAO (August 19, 2025) – USD1 can be borrowed on TRON’s largest lending platform, with flexible interest rates.
- Security Audit Passed (August 18, 2025) – Independent review found no major security issues in USD1’s smart contracts.
Detailed Overview
1. Launch on Solana (September 1, 2025)
What happened: USD1 was introduced on Solana, a blockchain known for handling a large number of transactions quickly and cheaply—up to about 65,000 transactions per second with fees less than a tenth of a cent.
This involved creating a new token on Solana (called an SPL token) and using a tool called Wormhole to connect USD1 across different blockchains. This move lets USD1 be used in popular Solana apps like NFT marketplaces, DeFi platforms, and payment services such as Step Finance.
Why it matters: Solana’s speed and low costs make it attractive for developers building apps that need fast, small payments or high-frequency trading. This expands USD1’s usefulness beyond its original Ethereum and Binance Smart Chain networks. (Source)
2. Added to JustLendDAO (August 19, 2025)
What happened: USD1 became available to borrow on JustLendDAO, the biggest lending platform on the TRON blockchain. It uses a “jump rate” interest model, starting at a low 0.01% annual percentage yield (APY) and increasing up to 72.9% when demand is high.
To make this work, JustLendDAO updated its smart contracts to handle USD1’s specific rules, including setting the initial collateral factor to 0% to reduce risk.
Why it matters: This is a neutral development for USD1. While it adds liquidity (making it easier to trade), the zero collateral factor means borrowing demand might be limited at first. The real impact depends on whether other TRON-based platforms start using USD1 for loans and leverage. (Source)
3. Security Audit Passed (August 18, 2025)
What happened: Peckshield, a respected security firm, reviewed USD1’s smart contracts on Ethereum and Binance Smart Chain. They found no critical vulnerabilities. The system uses multi-signature wallets (requiring multiple approvals for transactions) and Chainlink’s Proof of Reserves to ensure USD1 is fully backed 1:1 with real assets.
The audit also confirmed protections against common attacks and strict controls over minting and burning tokens, managed only by BitGo Trust.
Why it matters: This is positive news for USD1. Strong security audits reduce risks for users and institutions. Transparency through Chainlink’s data builds trust that USD1 maintains its stable value. (Source)
Conclusion
USD1 is making strategic moves to grow across multiple blockchains while maintaining high security standards. Its launch on Solana could open doors to new users and use cases beyond just trading. The question remains: will Solana’s fast and low-cost network help USD1 gain real-world adoption?