Binance Boosts Trump’s USD1 Stablecoin With 20% APR Program
What Drove USD1’s Sudden Market Cap Increase?
USD1, the dollar-pegged stablecoin linked to World Liberty Financial and the family of US President Donald Trump, added roughly $150 million in market capitalization on Wednesday following a new yield initiative from Binance. The token’s market value rose from about $2.74 billion to $2.89 billion within a single day later than the platform announced a promotional rewards program tied directly to USD1 holdings.
Binance said the “booster program” offers up to 20% annual percentage rate on flexible USD1 deposits exceeding $50,000. The promotion runs until Jan. 23, 2026, with bonus-tier rewards credited daily to users’ earn accounts. The platform said the program is designed to allow USD1 holders to “maximize their rewards,” placing the stablecoin at the center of its latest yield-driven offerings.
The rapid inflow highlights how platform-backed incentives continue to play an outsized role in stablecoin growth, particularly when paired with high headline yields and broad platform distribution.
Investor Takeaway
Why Is Binance Expanding Support for USD1?
The yield program is part of a broader effort by Binance to integrate USD1 deeper into its ecosystem. In December, the platform added fee-free trading pairs for USD1 against major cryptocurrencies. It also said it would convert all collateral assets backing its Binance USD stablecoin into USD1 on a 1:1 basis, effectively replacing BUSD exposure with the newer token.
Earlier this year, USD1 was used to settle a $2 billion investment by Abu Dhabi-based MGX into Binance platform, a deal publicly referenced by Eric Trump during a panel at Token2049 in Dubai. That transaction placed USD1 at the center of one of the largest crypto-related capital moves of 2025, lending the stablecoin additional visibility beyond retail trading.
These integrations have assisted USD1 climb into the ranks of the largest stablecoins globally. The token is now the seventh-largest by market capitalization, trailing PayPal’s PYUSD but ahead of several longer-established rivals.
How large Is the Trump Crypto Footprint?
USD1 is part of a wider set of crypto ventures linked to the banner. Those ventures reportedly generated about $802 million in income during the first half of 2025, underscoring how rapidly politically connected crypto projects have scaled amid renewed market momentum.
The combination of branding, high-profile partnerships, and platform-level support has drawn attention from both investors and regulators. While supporters frame USD1 as a quick-growing dollar alternative with , critics have questioned how closely its rise is tied to preferential treatment from major industry players.
Investor Takeaway
What Questions Remain Around Binance and USD1?
Despite USD1’s rapid ascent, unanswered questions remain about the relationship between . A Bloomberg report in July suggested Binance had played a role in developing some of the code behind USD1, citing unnamed sources familiar with the matter. disputed the report, saying it contained factual errors and hinting at potential legal action.
Lawmakers have also raised concerns. In October, Connecticut Senator Chris Murphy said Binance.US, a separate legal entity from the global platform, was “promoting Trump crypto.” His remarks came shortly later than Donald Trump granted a pardon to Binance’s owner, adding a political dimension to what might otherwise be a technical debate over stablecoin sponsorship and promotion.
Neither Binance nor World Liberty Financial has provided detailed disclosures clarifying the extent of their technical or commercial ties. As USD1 continues to grow, those questions are likely to intensify, particularly as regulators focus more closely on stablecoin governance, issuance, and platform relationships.
Can USD1 Sustain Its Momentum?
USD1’s rise shows how stablecoin rankings can change when large platforms align incentives, liquidity, and marketing around a single token. Whether that growth holds once promotional yields expire will be closely watched. High APR programs have historically driven short-term inflows that can reverse when returns normalize.
For now, USD1 has secured a prominent place in Binance’s ecosystem and a top-tier position in global stablecoin rankings. The next phase will depend on how much organic usage develops beyond yield farming and platform-driven activity—and how regulators respond to a stablecoin sitting at the intersection of crypto markets, politics, and concentrated platform support.
