Dual Giants Join Forces to Break the Deadlock: TRON Blockchain Supports Trump Family USD1, Creating a Milestone for Stablecoins

Author: Tron

On June 11, TRON founder Justin Sun announced on X (Twitter) that the stablecoin USD1 has officially completed its minting on the TRON blockchain. Subsequently, Eric Trump, the son of former U.S. President Donald Trump, also confirmed on X and thanked TRON for its support of USD1.

This is not surprising; as early as early May this year, Justin Sun and Eric Trump mentioned during their meeting in Dubai that the dollar stablecoin USD1 issued by WLFI would be natively issued on the TRON blockchain. Previously, USD1 had been issued on Ethereum and BSC, but the first two chains were more like trial runs, while the TRON chain is the real battleground for stablecoins.

Why must USD1 choose TRON?

It is easy to understand the issuance of USD1 on Ethereum, which, although declining, remains the blockchain network with the largest total value locked (TVL) and holds a dominant position in the DeFi space. The issuance on BSC was mainly due to Binance's $2 billion financing, which opted for USD1 as a payment method. In actual transfer usage, the trading volume of USD1 on both chains is not large; currently, most of USD1 is on BSC, hence the slightly larger trading volume.

（USD1 trading volume on Ethereum）

（USD1 trading volume on BSC）

During his time in Dubai, Justin Sun stated, "The integration of USD1 will bring new vitality to the TRON ecosystem. Our goal is to enable every user to easily use stablecoins through their mobile phones and participate in the global financial system." He also pointed out that the cooperation with WLFI marks a key step in the integration of DeFi and traditional finance, and in the future, he hopes to leverage USD1 to allow global users to seamlessly use stablecoins in their daily lives.

The official future vision and mission of TRON is to build a financial free port in the metaverse, enabling financial freedom for the world's eight billion people. This is also one of the reasons why TRON has surpassed Ethereum to become the largest issuance network for USDT. TRON's development vision is inherently suitable for the stablecoin ecosystem, which is a gene that other public chains do not possess. Therefore, TRON and USD1's operational direction is highly aligned, which is the first reason USD1 must choose TRON.

The second reason is that USD1 can have good dialogue with TRON founder Justin Sun, and both parties can cooperate and communicate. This does not mean that USD1 cannot communicate with other public chain founders, but in the realm of business communication, other public chain founders do not have this advantage. For example, the probability of Vitalik Buterin and Trump having such intersections is very low.

Previously, Justin Sun purchased a lunch with Warren Buffett, appeared on the cover of Forbes, and attended a dinner with Trump as a VIP. These are accumulations of business influence and reputation, not merely marketing. As Justin Sun's influence in the American business community reaches a certain level, such cooperation becomes natural. In other words, the collaboration between USD1 and TRON is actually the best combination where both parties share a common will and can maximize the effectiveness of cooperation.

A large dollar stablecoin with a political brand cannot have too deep of a collaboration with a completely unfamiliar public chain. Bitcoin can serve as a strategic reserve for the U.S., but stablecoins have not yet reached a fully decentralized stage, and operating stablecoins is very profitable. Only when centralized stablecoins are strong enough and accepted by most people can decentralized stablecoins have greater development space.

There is a misconception among some people regarding the cooperation between USD1 and TRON. Previously, Justin Sun and TRON collectively subscribed to $75 million worth of WLFI tokens, becoming the largest investor in the project. He is also the largest holder of Trump's MEME token, TRUMP, and attended Trump's dinner as a VIP on May 22, where he was invited to speak. This has led some to believe that USD1's rapid launch on the TRON chain is solely due to Justin Sun's significant financial investment, as if spending money alone could facilitate such cooperation. However, this viewpoint completely overlooks TRON's own strength—if there were no real technological advantages and ecological value, could mere financial input attract top stablecoin projects?

Next is the third reason, which is the most important one: TRON has already become the main battleground for stablecoins. The USDT stablecoin issued by Tether is the largest stablecoin globally, maintaining a market share of over 70% since mid-2023. The largest issuance network for USDT is TRON, and according to current data from Defillama, USDT issued on TRON accounts for 50.16%, nearly 10% ahead of Ethereum.

（As of June 13, USDT issuance network share）

Currently, the market cap of USDT is approximately $156 billion, while USD1 is only $2.1 billion, accounting for just 1.3% of USDT. However, in terms of growth speed, since the stablecoin USD1 was launched in March, its circulation has exceeded 2 billion in less than three months. In comparison, USDT took about five years to reach this milestone, while USDC took about two years (September 2020). Achieving this in such a short time highlights the strong momentum of USD1's development. Compared to USDT, USD1 still has significant competitive space, and to capture market position, it will inevitably increase its issuance volume. Clearly, only the TRON network, which has already supported a large volume of USDT stablecoins, can meet USD1's needs.

Regarding the performance of the TRON network, there is no need to elaborate too much. Customer recognition is the best proof—if the TRON network truly had high fees and poor experience, how could Tether, the world's largest stablecoin issuer, continue to choose to increase USDT issuance on the TRON network?

The First Stablecoin with a Political Brand: USD1

USD1 is a dollar stablecoin launched by World Liberty Financial (WLFI), with a total scale of approximately $2.187 billion. Its reserve assets include short-term U.S. Treasury bonds, dollar deposits, and other cash equivalents, and are regularly audited by third-party accounting firms to ensure 100% backing of its reserve portfolio. The compliant custody of USD1 is provided by BitGo, the world's largest independent qualified custodian.

As is well known, World Liberty Financial Inc. (WLFI) is a DeFi platform controlled by members of the Trump family, and the stablecoin issued by WLFI is naturally closely related to the Trump family. Therefore, USD1 is currently the only centralized stablecoin on the market with a national brand background, which is unprecedented.

The timing of USD1's launch is also very clever. In February of this year, a member of Congress first proposed the GENIUS Act, and then on March 25, WLFI officially announced the launch of the dollar stablecoin USD1, with on-chain deployment in April. On May 6, USD1 was first launched on the major exchange Huobi HTX, and on May 19, the U.S. Senate passed the GENIUS Act with a vote of 66 in favor and 32 against, marking the first time the U.S. has established a federal regulatory framework for stablecoins.

The launch of USD1 is highly synchronized with the advancement of the stablecoin bill. Currently, the bill is still in the approval stage, but USD1 has begun to gradually take shape. This close rhythm indicates a high likelihood of the bill being approved, which will bring significant benefits to the stablecoin market. It is precisely for this reason that USD1's layout can be so rapid.

After the official launch of USD1, the competition in the stablecoin market will transition from the wild era to a stage of competition among larger capital institutions in compliance, and TRON will play a crucial role in this transformation.

Conclusion

With the imminent implementation of the GENIUS Act and the Trump family's launch of USD1, the stablecoin market will usher in a new wave of competition. Reports from SWIFT and VISA both indicate that stablecoins are expected to become an important component of the future global payment system. This means that the function of stablecoins may upgrade from being intermediaries for cryptocurrency transactions to becoming the core channel for global transfer payments, which is likely to become a key growth point for the stablecoin market in the next phase.

Currently, TRON has become the largest issuance network for USDT, demonstrating strong market strength. The addition of USD1 is not only a necessary trend but will also create common development opportunities for both parties in future competition.