The value of USD1, a stablecoin linked to Donald Trump’s family, has surged to $4.5 billion since November 2024, reports The Wall Street Journal. The rise was driven largely by decentralized exchange PancakeSwap, created by Binance staff, which rolled out aggressive trader incentives.
How USD1 Works
USD1 was launched by World Liberty in March 2025 as the company’s flagship stablecoin, pegged 1:1 to the US dollar. Funds backing USD1 are invested in US Treasuries and money market funds, with no interest paid to token holders.
The Trump family owns 40% of World Liberty. According to WSJ estimates, the $2 billion USD1 in circulation generates about $80 million in annual revenue for the president’s family from yields on the underlying reserves.
The Role of PancakeSwap and Binance
- PancakeSwap was built in 2020 on Binance’s blockchain and is still “quietly administered” by the company.
- Since May 2025, daily USD1 trading volumes on PancakeSwap jumped from tens of millions to $1 billion.
- The exchange now accounts for over 90% of all USD1 transactions.
To drive adoption, PancakeSwap launched a Liquidity Drive campaign with prizes of up to $1 million for top trading volumes — a tactic likened to casinos giving chips to new customers or brokers offering free trades.
Binance further promoted USD1 through:
- The Binance Alpha program, highlighting new projects and directing traders to PancakeSwap.
- A $2 billion investment in World Liberty tokens, which expanded USD1’s supply 15-fold before the incentive campaigns even began.
The China Connection
Despite Donald Trump’s frequent criticism of China, the project has ties to players connected to the country:
- PancakeSwap’s website is registered in Shanghai.
- World Liberty investors include Hong Kong billionaire Justin Sun.
- Binance’s largest market is China.
- In August, Eric Trump is expected to meet partners in Hong Kong to seek investment from HashKey, linked to Chinese conglomerate Wanxiang Group.
Potential Conflict of Interest
Bloomberg previously reported that Binance wrote USD1’s code shortly before its founder Changpeng Zhao sought a presidential pardon from Trump. Critics note that Trump is the only person who could grant it, calling the situation unprecedented since the US Civil War.
Zhao, whose net worth exceeds $70 billion, spent four months in US prison in 2024 after Binance agreed to pay $4.3 billion in fines for facilitating money laundering, sanctions violations, and other illicit activity. WSJ adds that he has hired a lobbyist close to Donald Trump Jr. to advocate for the pardon.
Information link: minfin.