Eric Trump says USD1 tops PYUSD as WLFI grows via exchange boosts and RWA deals
World Liberty Financial’s USD1 stablecoin has reached roughly $4.5 billion in market cap, overtaking PayPal’s PYUSD at about $3.76 billion, the company’s backers say. Eric Trump announced the milestone on X, attributing USD1’s rapid growth to strategic exchange partnerships (notably Binance), high-yield exchange “booster” savings programs, and a focus on real-world asset (RWA) tokenization — commodities such as oil, gas and timber are being tokenized using USD1. USD1 previously facilitated a $2 billion MGX investment into Binance. WLFI launched less than a year ago and has also introduced a WLFI governance token (market cap reported at $4.7 billion) and a Bitcoin mining arm, American Bitcoin, which disclosed a treasury of over 5,000 BTC. WLFI applied for a U.S. national trust bank charter on January 8, 2026; OCC approval would allow federal oversight to issue and custody USD1. Upcoming WLFI events include a World Liberty Forum at Mar-a-Lago on February 18, 2026, with high-profile speakers expected. The article notes that the GENIUS Act (signed July 2025) prohibits stablecoin issuers from paying interest directly, making exchange “earn” programs a primary yield route. Traders should note market-cap shifts, liquidity inflows tied to exchange incentives, regulatory developments around a potential WLFI bank charter, and increased RWA activity as the main drivers that could affect USD1, PYUSD and related token liquidity.
Bullish
USD1’s rapid market-cap gain is driven by exchange-led yield programs, large capital flows (including a $2B MGX-to-Binance transaction), and an expansion into RWA tokenization — all factors that increase demand and on-chain liquidity for USD1. Exchange “booster” programs that offer high APYs have historically pulled capital into targeted tokens quickly (similar to exchange-led staking/earn programs in past cycles), creating short-term bullish pressure on price and market cap. WLFI’s application for a national trust bank charter is a potentially positive regulatory development: federal oversight could increase institutional confidence and custody options, supporting longer-term adoption. However, regulatory risk remains (charter approval is not guaranteed) and earned yields via exchanges may compress if regulators or exchanges change terms, which could reduce inflows. PYUSD losing market share may shift stablecoin liquidity and trading pairs toward USD1, impacting stablecoin spreads and stablecoin-backed leverage across exchanges. Short-term: likely bullish for USD1 and related WLFI tokens due to inflows and positive sentiment. Mid-to-long-term: conditional bullish if regulatory approval and sustainable RWA revenues materialize; otherwise, volatility and potential retracement could follow if exchange incentives fade or regulatory scrutiny increases.