Coinbase Lists USD1 Stablecoin Amid Political Questions
Coinbase,a major crypto exchange,has added World Liberty Financial’s USD1 stablecoin. This move makes USD1 accessible to more investors, according to an August 21 announcement.
Customers can now trade adn store USD1 using Coinbase’s apps and web platform. Initially, it’s supported on Ethereum, and availability varies by region due to local laws.
Eric Trump, the U.S. president’s son, shared Coinbase’s announcement, highlighting the stablecoin’s political ties. On the same day, World Liberty Financial revealed a $205 million mint of USD1 for its treasury, claiming it’s the fastest-growing stablecoin.
USD1 has quickly gained traction since March, reaching a $2.2 billion market cap by August 21. It’s now the fifth-largest stablecoin globally, ahead of rivals like FDUSD and PYUSD.Institutional investors, including Binance and Abu Dhabi’s MGX fund, have backed USD1 with a $2 billion investment.
- USD1 is custodied by bitgo Trust Company.
- It’s backed by U.S. dollars,cash equivalents,and Treasuries.
- The stablecoin runs on Ethereum, Binance Smart Chain, and TRON.
- Monthly audits verify its reserves.
However, USD1 faces skepticism.More than half of the supply is held in three wallets, sparking liquidity concerns.Legislators worry about potential conflicts because of its Trump family connection.
coinbase’s decision to list USD1 is seen as a boost for the stablecoin’s visibility and trade volume. Yet, it also draws more regulatory attention because of these political links.
