Could Trump-Backed USD1 Dethrone Tether and USDC as the Stablecoin King by 2028?

Highlights:

• Blockstreet predicts USD1 could become the world’s leading stablecoin by 2028.

• USD1 has already reached a $2.5 billion market cap since its April 2025 launch.

• The stablecoin market is projected to expand to between $500 billion and $2.8 trillion within three years.

• Major adoption signals include a $2 billion sovereign investment settlement executed using USD1.

A New Contender in the Stablecoin Arena

The stablecoin sector is one of the most dynamic segments of digital assets, with a market capitalization already surpassing $285 billion. Within this competitive landscape, a new entrant—USD1—has emerged with ambitions to rival, and potentially surpass, established giants such as Tether (USDT) and Circle’s USD Coin (USDC). According to Kyle Klemmer, co-founder of Blockstreet, USD1 could ascend to become the world’s top stablecoin by 2028, coinciding with the end of a possible second Trump administration.

USD1 is issued by World Liberty Financial, a venture closely tied to former President Donald Trump and his family. Its blend of financial innovation and political symbolism has thrust it into the spotlight faster than most new projects in the crypto arena.

Rapid Growth and Political Momentum

Since its launch in April 2025, USD1 has already achieved a market capitalization of approximately $2.5 billion. While this figure remains modest compared to Tether’s $71 billion and USDC’s $167 billion, the pace of adoption is notable. The token’s availability across major blockchains—Ethereum, BNB Chain, Tron, and Solana—has accelerated its integration into the broader digital ecosystem.

Perhaps most striking is USD1’s role in facilitating a $2 billion investment by a Middle Eastern sovereign fund into Binance. That single transaction signaled institutional confidence and demonstrated USD1’s potential utility as a settlement mechanism in high-value global deals.

The association with Donald Trump adds another layer of influence. In an environment where digital assets remain polarizing, political backing can both bolster visibility and introduce new dimensions of risk. For investors, USD1 represents not only a financial instrument but also a symbolic play on the intersection of politics, finance, and technology.

Expanding Market Tides

The timing of USD1’s rise is critical. Analysts from major financial institutions project the stablecoin market to grow dramatically over the next three years. JPMorgan anticipates valuations reaching $500 billion by 2028, while others forecast as much as $2.8 trillion. Such growth implies significant room for new challengers to capture market share without directly displacing incumbents.

USD1’s strategy hinges on positioning itself as a politically anchored, institutionally friendly stablecoin that could appeal to sovereign funds, high-net-worth investors, and global enterprises. Its multi-chain presence gives it flexibility, while its branding ties may resonate with investors seeking alignment with U.S. economic and political narratives.

Navigating Entrenched Rivals and Risks

Despite its early success, USD1 faces formidable obstacles. Tether and USDC hold a commanding advantage in liquidity, exchange integrations, and institutional trust. Their compliance frameworks and deep market penetration have weathered multiple market cycles, giving them resilience that cannot be replicated overnight.

Regulatory scrutiny is another looming factor. Global regulators have grown increasingly cautious about the systemic risks posed by stablecoins, including concerns around transparency, reserve quality, and governance. USD1’s political connections could amplify this scrutiny, inviting both domestic and international oversight. Moreover, the project’s branding around the Trump name may polarize market participants, with some viewing it as an asset of influence and others as a potential liability.

What Lies Ahead

The road to dominance will depend on whether USD1 can sustain adoption beyond symbolic transactions and integrate seamlessly into both crypto markets and traditional finance. A planned governance token, WLFI, may serve as a further test of the project’s ability to attract a loyal investor base and build a broader ecosystem.

For now, USD1 remains a rising player in a field dominated by incumbents. Its rapid growth, high-profile partnerships, and political momentum ensure it will stay under close watch. With the stablecoin market poised for exponential expansion, the question is not whether there is room for another major contender, but whether USD1 can overcome entrenched rivals and regulatory scrutiny to seize that opportunity.