Rising stablecoin star USD1: Abu Dhabi injected $2 billion to become the world's seventh-largest stablecoin

Author: EnHeng

The stablecoin track has always been one of the important infrastructures in the crypto field, and USD1, a dark horse that has recently risen, has become the focus of market attention.

USD1 is a stablecoin pegged to the U.S. dollar launched by World Liberty Financial, and each USD1 is held in custody by BitGo Trust Company through a reserve mechanism to ensure 1:1 U.S. dollar support and fund security. USD1 sparked a stir in the news that Abu Dhabi investment agency MGX had completed an investment of up to $2 billion in Binance through USD1. This not only marks that Binance has received sovereign wealth fund support and provides the best liquidity in the world, but also means that USD1 has officially entered the stage of institutional-grade cross-border settlement.

As of now, the total supply of USD1 is about 2.136 billion, and the market capitalisation has exceeded $2.14 billion, making it one of the seventh largest stablecoins in the world. More than 99% of USD1 has been deployed on BNB Chain, about 2.1 billion; About 14.5 million are also deployed on the Ethereum network. BNB Chain's zero-gas incentive mechanism has dramatically reduced transaction costs and quickly attracted a large number of users to DeFi protocols. At present, there are a number of meme projects that use USD1 as a pot for narrative, which has further increased the market attention, just like $B was bought by WLFI in the market.

On BNB Chain, USD1 has become a mainstream source of stablecoin liquidity, and is widely used in core scenarios such as DEXs, lending protocols, and perpetual contracts. The trading volume of USD1 on PancakeSwap reached $4.6 million in the past 24 hours, which significantly enhanced the stability and liquidity of the chain. In addition, USD1 continues to expand its ecosystem cooperation and has established in-depth partnerships with many mainstream protocols such as StakeStone, Pyth Network, Falcon Finance, Venus Protocol, and Radiant Capital, further consolidating its core position in the DeFi field.

In terms of cross-chain ecology, USD1 has successfully landed on the ETH network and will soon be connected to the TRON ecosystem, which will significantly expand the layout of USD1 in staking, lending, mining and other scenarios, and enhance its overall liquidity and ecological value.

In terms of exchanges, HTX and MEXC have launched USD1/USDT trading pairs, of which HTX exchange has a 24-hour trading volume of up to $15.94 million, becoming one of the most active trading pairs. In addition, Binance has officially listed USD1, with a 35% surge in first-hour trading volume to 12 million coins, and 8,000 new on-chain addresses within 24 hours, reflecting the strong market appeal of USD1.

In the field of payment, WLFI has launched a global debit card that supports USD1, and users can use USD1 to make purchases at designated merchants around the world. At the same time, Pundi X integrates USD1 into its XPOS terminal and Pundi X Pay application, especially in emerging markets such as Southeast Asia, to widely promote USD1 real-life payment scenarios.

In the future, USD1 will continue to promote multi-chain expansion and deepen cooperation with traditional financial institutions, and continue to enhance its competitiveness and influence in the field of cross-border payment.

To sum up, USD1 has achieved a multi-dimensional ecological layout from DeFi, payment to cross-chain, exchange, traditional finance, etc., showing strong ecological integration capabilities. With the implementation of more cooperation agreements and the continuous improvement of user engagement, USD1 is expected to occupy a central position in the next wave of stablecoins, further promoting the prosperity of the BNB Chain ecosystem.

As co-founder @ZachWitkoff emphasises, "Stablecoins represent the future of settlement networks. They make the dollar global, borderless: no intermediaries, no remittance fees, no bank time constraints, and a truly efficient and transparent settlement technology that both institutions and retail investors are choosing together. The world needs solutions like USD1 that can dramatically reduce corruption and inefficiencies in the financial system. "

This article is based on submissions and does not represent the views of ChainCatcher, nor does it constitute investment advice.