- USD1, a stablecoin by World Liberty Financial, reached a $2.1 billion market cap just 60 days after its 2025 launch.
- It outpaced the early growth of USDT and USDC.
- Its success has revived interest in using Bitcoin as a settlement layer for stablecoins.
The rapid rise of stablecoins, particularly World Liberty Financial’s USD1, is reshaping industry conversations. Launched in March 2025, USD1 reached a $2.1 billion market cap within just two months, an explosive debut that’s drawn renewed attention to Bitcoin’s potential as a host for stablecoin payment rails.
According to a blog post by crypto analyst Norbert, USD1’s growth is fueling broader speculation about Bitcoin evolving from a store of value into a transactional backbone for digital dollars.
WLFI: From Skepticism to Success
Notably, World Liberty Financial launched in September 2024 to mixed reactions. Critics questioned its ties to the Trump family and called the project politically motivated. Venture capital firms kept their distance, and analysts flagged potential conflicts of interest.
Related: World Liberty Financial Airdrops $4 Million USD1 to 85,106 WLFI Holders
But by March 2025, the narrative had shifted. The project had secured $590 million in capital through its native token pre-sale, placing it among the top 10 token raises on DeFiLlama.
According to the blog, the Trump family holds approximately 22.5 billion governance tokens and earns platform fees, adding to the project’s polarizing reputation. High-profile support also emerged. In November 2024, blockchain entrepreneur and Tron founder Justin Sun invested $30 million in World Liberty Financial.
Institutional investors followed suit over the next few months. Meanwhile, a reported scale-down of an SEC probe in February helped ease regulatory concerns.
USD1: The Fastest-Growing Stablecoin of 2025
Amid these successes, USD1 launched in March 2025 as a U.S. dollar-pegged stablecoin. It is backed entirely by short-term Treasuries, cash, and cash equivalents. BitGo Prime manages custody. Chainlink’s CCIP enables cross-chain functionality between Ethereum and Binance Smart Chain.
On June 4, WLFI distributed a $47 airdrop to 85,000 early adopters. The campaign accelerated adoption and pushed USD1’s market cap to $2.1 billion within 60 days, outpacing the early growth of USDT, USDC, and FRAX.
Institutional Appeal and Compliance Focus
USD1 presents itself as a compliance-first project, targeting institutional capital. It combines regulated asset custody with deep liquidity for traders. Monthly attestations and U.S. asset backing provide further transparency. WLFI’s approach aligns with growing global calls for clearer stablecoin regulations.
Notably, the global stablecoin market cap stands at $252 billion, with projections placing it at $400 billion by year-end. Stablecoins account for 88% of all crypto trading volume, highlighting their growing importance in the digital economy.
Bitcoin as a Settlement Layer?
The rapid rise of USD1 has reignited interest in Bitcoin’s role in stablecoin infrastructure. While stablecoins like USDT dominate on Ethereum and other blockchains, Tether’s success with its Plasma Foundation-backed payment network has shown how dedicated infrastructure can streamline transactions.
Related: Elon Musk Warns U.S. Debt Interest Imperils Spending; Bitcoin Solutions Proposed
Plasma enables fast, zero-fee stablecoin transfers for Tether users. Analyst Norbert believes that if WLFI adopts a similar model for USD1 integrated on Bitcoin, it could transform Bitcoin into a transactional hub for digital dollars, expanding its use case beyond long-term holding.
If Bitcoin becomes a base layer for stablecoin settlements, the implications could reshape how digital dollars move across global markets.
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