A Trump-backed stablecoin called USD1 has reportedly reached $4.9 billion in circulation, surpassing PayPal’s PYUSD in gross issuance. This growth has been rapid, without a corresponding increase in public disclosures or third-party audits. Timing is important as stablecoins move from crypto side projects to traditional payment tools.
Stablecoins are cryptographic tokens designed to maintain a stable price of $1. Think of them as digital dollars that move at the speed of the Internet. When you grow this quickly, it attracts the attention of traders, regulators and everyone who uses crypto as a savings tool.
The jump also comes amid a global race over who controls digital dollars. Governments and businesses want influence. Retail users just want something that works and doesn’t break.
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What is USD1 and why is it suddenly everywhere? Trump’s best plan yet
USD1 is the fastest growing stablecoin in the industry.
It will soon be part of the top 3 stablecoins.
I think $WLFI will follow and will soon reach the top 10. pic.twitter.com/5a1V7gD0Ig
– Peak (@CryptoPeakX) January 26, 2026
USD1 is a dollar-pegged token linked to a Trump-aligned project. “Pegged” means that a token aims to be equal to one US dollar at all times. The promise seems simple. The trust behind it is not.
Circulation means how many tokens exist, not how many people are actively using them. A project can generate billions quickly if the big holders agree to take them. This is very different from the demand for organic products in cafes or online checkouts.
For comparison, PayPal’s PYUSD launched with full brand recognition and compliance teams. However, 1 USD is now ahead in terms of size. This raises a big question. Who holds these tokens and why?
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Why Switching to PayPal Stablecoin is Important
A major milestone for USD1. We are now larger than PayPal Digital Dollar (PYUSD) and have become one of the largest digital dollar platforms in the world.
It’s not just about crypto. It is about building the future of the world currency.
Change is happening.… pic.twitter.com/j26JlP5kKU
– Eric Trump (@EricTrump) January 23, 2026
PayPal represents the clean, regulated path to cryptocurrencies. USD1 represents the political path. Size alone does not equate to security, but it does create influence.
Larger stablecoins are listed faster on exchanges and connected to DeFi applications. DeFi applications are automated monetary tools. Think about credit markets without banks. This exposure can snowball into adoption.
This also fuels broader stablecoin competition between governments and private issuers. Control the stablecoin and you influence how digital dollars evolve.
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So, should you care or stay away?
Ranking has increased
The daily trading volume is 5 billion USD1, which ranks it third among stablecoins.
47/3.75B #USD1 pic.twitter.com/NAVwrHFaG5
– Dylan_0x (@0xDylan_) January 23, 2026
If you use stablecoins for payments or savings, transparency matters more than hype. Bigger is not safer by default. Ask where support is located and who controls the keys.
Stablecoins play a real role in global finance, from trade to aid distribution, as broader Stablecoin adoption efforts show. But not all dollar tokens deserve the same trust.
The growth of 1 USD sends a signal. Political branding can move billions quickly. Whether it can protect everyday users under stress is the test that matters.
For now, watch how regulators react and whether independent audits emerge. In crypto, trust built silently rarely lasts.
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The post USD1 Stablecoin Grows to $4.9 Billion, Via PayPal: Best Thing Trump Did? appeared first on 99Bitcoins.



