USD1 Supply Jumps $150M After Binance Yield Program Launch

▪ USD1 stablecoin market cap rose by $150M, from ~$2.74B to $2.89B, following Binance’s new yield initiative

▪ The program offers up to 20% APR on USD1 flexible products for deposits above $50,000

▪ Bonus-tier rewards are distributed daily and run until Jan 23, 2026

USD1 Gains Momentum Inside the Binance Ecosystem

▪ Binance expanded USD1 support with fee-free trading pairs for major cryptocurrencies

▪ The exchange announced plans to convert BUSD collateral into USD1 at a 1:1 ratio

▪ USD1 was used to settle MGX’s $2B investment into Binance, revealed at Token2049 Dubai

Market Positioning

▪ USD1 has climbed to become the 7th-largest stablecoin by market capitalization

▪ Trails PayPal USD (PYUSD) but continues gaining distribution through exchange integrations

▪ Part of broader crypto ventures linked to the Trump family, which reportedly generated $802M in H1 2025

Regulatory and Governance Questions Persist

▪ Reports have raised questions about Binance’s involvement in USD1’s development

▪ Binance leadership has denied allegations of improper ties

▪ US lawmakers have expressed concerns over political affiliations and exchange promotion

Bottom Line

▪ Yield incentives can rapidly accelerate stablecoin adoption and supply growth

▪ Exchange-backed distribution remains one of the strongest drivers of stablecoin scale

▪ As USD1 expands, regulatory scrutiny is likely to intensify