World Liberty Financial’s USD1 Tops $5B Market Cap as TRUMP Meme Coin Stumbles

A Trump-linked stablecoin has crossed a $5 billion market cap in under a year, while the U.S. President’s official meme coin has collapsed more than 94% from its peak, as capital flows shift toward yield-bearing, institution-friendly stablecoins.

World Liberty Financial’s dollar-backed stablecoin $USD1 surpassed $5 billion in market capitalization this week, making it the fifth-largest stablecoin less than a year after its launch, according to CoinGecko data.

Over the same period, the Solana-based Official Trump ($TRUMP) meme coin has fallen more than 93% from its all-time high of roughly $75, and is now trading at $4.66.

"Built in America, designed for real-world scale, and adopted by serious institutions,” World Liberty Financial co-founder Donald Trump Jr. tweeted on Wednesday. “This is what happens when you focus on infrastructure over noise."

$USD1's ascent comes as World Liberty Financial applied to form a national trust bank to the U.S. Office of the Comptroller of the Currency.

If approved, the proposed World Liberty Trust Company will handle $USD1's issuance, redemption, conversion services, custody operations, and reserve management under direct federal supervision.

$USD1 under scrutiny

$USD1 first gained prominence after it was used in a $2 billion investment in Binance from Abu Dhabi-based sovereign wealth fund MGX, with the capital paid in $USD1—a move that drew scrutiny from U.S. lawmakers including Senator Elizabeth Warren (D-MA) over potential conflicts of interest.

Addressing the deal, Binance founder Changpeng Zhao recently told CNBC the arrangement had been “misconstrued,” saying that MGX chose $USD1 and that he requested crypto payment because “I don’t want to deal with banks, really.”

Following the MGX deal and CZ’s presidential pardon, $USD1 was integrated into Binance’s core infrastructure last month.

Last month, Warren warned Treasury Secretary Scott Bessent and Attorney General Pam Bondi that $USD1 could pose national security risks, citing its trading on decentralized exchange PancakeSwap, where blockchain data showed $263 million in North Korea–linked laundered funds, and the DEX’s liquidity partnership with World Liberty Financial to promote $USD1 pairs.

$TRUMP slumps

Meanwhile, the $TRUMP meme coin, launched days before Trump’s second inauguration, has sharply declined. "Utility is starting to win over pure hype,” Narek Gevorgyan, founder and CEO of CoinStats, told Decrypt, regarding $USD1’s growth and $TRUMP token’s crash.

Gevorgyan noted that insiders extracted over $800 million from the $TRUMP token before the narrative collapsed, leaving what he described as a high-risk technical trade with credibility that's "probably gone for good."

Lawmakers have raised concerns regarding $TRUMP over conflicts of interest, foreign influence, and the risk of a future rug pull once the token's three-year lockup expires, with Sen. Warren noting in January 2025 that the Trump Organization controlled 80% of the meme coin's supply.

Peter Chung, head of research at Presto Labs, told Decrypt the $TRUMP token's decline reflects "a memecoin-wide phenomenon, not specific to Trump or politics," noting that $USD1's recent growth is happening primarily offshore through programs like Binance rewards.

The broader stablecoin sector has grown substantially following last year's passage of the GENIUS Act, which created a federal regulatory framework for dollar-pegged cryptos.

Total U.S. dollar stablecoin supply now stands at $312 billion, per CoinGecko data, with users on Myriad, a prediction market owned by Decrypt’s parent company Dastan, seeing just a 2% likelihood that the sector’s market cap will surpass $360 billion before next month.