Author: EnHeng
The stablecoin track has always been an important infrastructure in the crypto field, and the recently emerging dark horse - USD1, has become the focus of market attention.
USD1 is a dollar-pegged stablecoin launched by World Liberty Financial, with each USD1 custodied by BitGo Trust Company through a reserve mechanism, ensuring 1:1 US dollar support and fund security. USD1 sparked heated discussion due to a heavyweight news - MGX, an Abu Dhabi investment institution, completed a $2 billion investment to Binance through USD1. This not only marks Binance receiving sovereign fund support and providing the world's best liquidity, but also means USD1 has officially entered the stage of institutional cross-border settlement.
As of now, USD1's total supply is approximately 2.136 billion, with a market value exceeding $2.14 billion, ranking seventh among global stablecoins. Over 99% of USD1 has been deployed on BNB Chain, around 2.1 billion; approximately 14.5 million have been deployed on the Ethereum network. The zero gas fee incentive mechanism launched by BNB Chain significantly reduced transaction costs, quickly attracting numerous users and DeFi protocols. Currently, multiple meme projects are using USD1 as a liquidity pool, further enhancing market attention, such as $B being purchased by WLFI in the market.
On BNB Chain, USD1 has become a mainstream stablecoin liquidity source, widely applied in core scenarios like DEX, lending protocols, and perpetual contracts. USD1's trading volume on PancakeSwap reached $4.6 million in nearly 24 hours, significantly enhancing chain stability and liquidity. Additionally, USD1 continues to expand ecosystem cooperation, now establishing deep cooperative relationships with mainstream protocols like StakeStone, Pyth Network, Falcon Finance, Venus Protocol, and Radiant Capital, further consolidating its core position in the DeFi field.
In the cross-chain ecosystem, USD1 has successfully landed on the ETH network and is about to access the TRON ecosystem, which will significantly expand USD1's layout in scenarios like staking, lending, and mining, enhancing its overall liquidity and ecosystem value.
On exchanges, HTX and MEXC have launched USD1/USDT trading pairs, with HTX exchange's 24-hour trading volume reaching $15.94 million, becoming one of the most active trading pairs. Moreover, Binance has officially launched USD1, with trading volume surging 35% in the first hour to 12 million, and adding 8,000 on-chain addresses within 24 hours, demonstrating USD1's strong market attraction.
In the payment field, WLFI launched a global debit card supporting USD1, allowing users to consume USD1 at designated merchants worldwide. Meanwhile, Pundi X integrated USD1 into its XPOS terminals and Pundi X Pay application, especially promoting USD1's real payment scenarios in emerging markets like Southeast Asia.
In the future, USD1 will continue to promote multi-chain expansion and deepen cooperation with traditional financial institutions, continuously enhancing its competitiveness and influence in cross-border payments.
In summary, USD1 has achieved a multi-dimensional ecosystem layout from DeFi, payment to cross-chain, exchanges, and traditional finance, demonstrating strong ecosystem integration capabilities. As more cooperative protocols are implemented and user participation continues to improve, USD1 is expected to occupy a core position in the next stablecoin wave, further promoting the prosperity of the BNB Chain ecosystem.
As co-founder @ZachWitkoff emphasized: "Stablecoins represent the future of settlement networks. They globalize and borderize the US dollar: no intermediaries, no remittance fees, not restricted by bank hours - a truly efficient and transparent settlement technology that both institutions and retail investors are collectively choosing. The world needs solutions like USD1 that can greatly reduce financial system corruption and inefficiency."
This article is from a contribution and does not represent ChainCatcher's perspective, nor does it constitute investment advice.
