Coinbase Lists USD1 Stablecoin Amid Trump Ties
Coinbase has listed USD1 stablecoin on both Coinbase and Coinbase Exchange in approved regions, enabling retail and institutional users to trade, convert, and store the ERC-20 token. Since its March 2025 launch, USD1’s market capitalization has surged to over $2.2 billion, ranking it the fifth-largest stablecoin ahead of FDUSD and PYUSD. Fully backed by dollar deposits, cash equivalents and U.S. Treasuries custodied by BitGo Trust, USD1 offers zero-fee minting and redemption across Ethereum, Binance Smart Chain and TRON, with monthly third-party audits. The listing gained attention when Eric Trump reposted Coinbase’s announcement, highlighting the token’s political ties to the Trump family; World Liberty Financial minted $205 million of USD1 for its treasury that same day. Major institutions are already using USD1 for large transactions: Bullish Exchange processed IPO funds and Abu Dhabi’s MGX sovereign fund executed a $2 billion trade via Binance. Traders should monitor reserve audits, liquidity concentration—over 50% of the supply is held in three wallets—and peg stability under stress, as regulatory scrutiny intensifies around stablecoin governance and concentration risks.
Neutral
The Coinbase listing of the USD1 stablecoin should boost liquidity and visibility, supporting peg stability and trading volume in the short term. Institutional transactions by Bullish and Abu Dhabi’s MGX fund signal growing demand, a bullish indicator. However, significant supply concentration in three wallets, potential conflicts of interest due to political ties, and heightened regulatory scrutiny introduce uncertainty and risk. These mixed factors balance potential upside with caution, leading to a neutral outlook on USD1’s price direction.