The rise of the new stablecoin USD1: Abu Dhabi's $2 billion investment propels it to the seventh largest stablecoin in the world

Author: EnHeng

The stablecoin sector has always been one of the important infrastructures in the cryptocurrency field, and a recent dark horse—USD1—has become the focus of market attention.

USD1 is a dollar-pegged stablecoin launched by World Liberty Financial, with each USD1 being held in custody by BitGo Trust Company through a reserve mechanism, ensuring a 1:1 dollar backing and fund security. USD1 has sparked heated discussions due to a significant piece of news—Abu Dhabi investment firm MGX completed a $2 billion investment in Binance through USD1. This not only marks Binance's acquisition of sovereign fund support and provides the best global liquidity but also signifies that USD1 has officially entered the stage of institutional-level cross-border settlement.

As of now, the total supply of USD1 is approximately 2.136 billion, with a market capitalization exceeding $2.14 billion, ranking it as the seventh largest stablecoin globally. Over 99% of USD1 has been deployed on the BNB Chain, amounting to about 2.1 billion; approximately 14.5 million have also been deployed on the Ethereum network. The zero Gas fee incentive mechanism launched by BNB Chain has significantly reduced transaction costs, quickly attracting a large number of users and DeFi protocols. Several meme projects have already used USD1 as a liquidity pool narrative, further increasing market attention, similar to how $B was purchased in the market by WLFI.

On the BNB Chain, USD1 has become a mainstream source of stablecoin liquidity, widely used in core scenarios such as DEX, lending protocols, and perpetual contracts. The 24-hour trading volume of USD1 on PancakeSwap reached $4.6 million, significantly enhancing on-chain stability and liquidity. Additionally, USD1 continues to expand its ecological partnerships, having established deep collaborations with several mainstream protocols such as StakeStone, Pyth Network, Falcon Finance, Venus Protocol, and Radiant Capital, further solidifying its core position in the DeFi space.

In terms of cross-chain ecology, USD1 has successfully landed on the ETH network and is about to connect with the TRON ecosystem, which will significantly expand USD1's layout in staking, lending, and mining scenarios, enhancing its overall liquidity and ecological value.

In the exchange sector, HTX and MEXC have launched the USD1/USDT trading pair, with HTX exchange achieving a 24-hour trading volume of up to $15.94 million, becoming one of the most active trading pairs. Furthermore, Binance has officially listed USD1, with the first hour's trading volume surging by 35% to reach 12 million, and 8,000 new on-chain addresses created within 24 hours, reflecting USD1's strong market appeal.

In the payment sector, WLFI has launched a global debit card supporting USD1, allowing users to spend USD1 at designated merchants worldwide. Meanwhile, Pundi X has integrated USD1 into its XPOS terminals and Pundi X Pay application, particularly promoting USD1 in real payment scenarios in emerging markets such as Southeast Asia.

In the future, USD1 will continue to advance multi-chain expansion and deepen cooperation with traditional financial institutions, continuously enhancing its competitiveness and influence in the cross-border payment sector.

In summary, USD1 has achieved a multidimensional ecological layout from DeFi, payments to cross-chain, exchanges, and traditional finance, demonstrating strong ecological integration capabilities. With more cooperative agreements being implemented and continuous improvement in user participation, USD1 is expected to occupy a core position in the next wave of stablecoin trends, further promoting the prosperity of the BNB Chain ecosystem.

As co-founder @ZachWitkoff emphasized: "Stablecoins represent the future of settlement networks. They globalize and eliminate borders for the dollar: no intermediaries, no remittance fees, and not restricted by bank hours, making it a truly efficient and transparent settlement technology. Both institutions and retail investors are collectively choosing this better solution. The world needs solutions like USD1, which can greatly reduce corruption and inefficiency in the financial system."

This article is from a submission and does not represent the views of ChainCatcher, nor does it constitute investment advice.