Binance’s BNB Chain received $2 billion in stablecoin investments last week, caused by the release of USD1 tokens from World Liberty Financial.

In the last seven days, DeFiLlama reports BNB Chain stablecoins increased their value by 30% and now hold $9.26 billion in assets.

The rise in BNB Chain stablecoin reserves matches Solana’s whole total by $3.8 billion, representing its closest challenge since the Solana memecoin boom took effect.

BNB Chain Stablecoin Market Grows Amid USD1-Driven Inflows

Stablecoin Market Rises Amid Regulatory Scrutiny

USD1 launched as a new stablecoin on BNB Chain, catching the industry’s attention as a token fully backed by U.S. Treasury bills and secured by BitGo digital asset protection.

The new stablecoin now operates on BNB Chain because its creators want the digital asset industry to recognize their stability. Stablecoins gained 2.5% during the week, reaching $240.47 billion in value, while financial authorities retain close monitoring of this sector.

Although Tron and Ethereum control 80% of the stablecoin market, combined they now share 33% of it alongside BNB Chain. Solana owns 5%, while BNB Chain stands close behind at 3.8%. At present, the excitement for memecoins on Solana appears to wane, which makes it easier for USD1 to challenge existing leaders.

Beyond financial support, USD1 has clear political associations. World Liberty Financial, which worked with President Donald Trump, launches USD1 as a currency that can flow across any borders. Eric Trump announced that MGX Capital chose USD1 to invest $2 billion through Binance as he promoted developing a better-regulated digital asset field.

BNB Chain Stablecoin Market Grows Amid USD1-Driven Inflows

Despite its fast rise to popularity, USD1 confronts multiple obstacles. It ranks 7th today among stablecoins because it accomplished what PayPal and other seasoned peers failed to do.

BNB Chain Sees Record Stablecoin Surge

Most trading platforms do not offer USD1 tokens for trading, even though market liquidity remains limited. There is no public information available about the auditing process of USD1 because its smart contract evaluation results and reserve attestations remain unknown.

Early adopters of USD1 join in because of promotional programs, while the market may resist using it permanently. According to Borderless.xyz co-founder Kevin Lehtiniitty, launching a stablecoin is easy, but finding trust and creating lasting user adoption represent a bigger challenge.

BNB Chain Stablecoin Market Grows Amid USD1-Driven Inflows

For Zach Witkoff at World Liberty, Financial USD1 serves as a powerful solution for governments and large banking institutions to exchange funds across borders safely. The effects USD1 has made on BNB Chain are clear, though its future success at this goal is uncertain.

Recent funding into BNB Chain’s stablecoin market achieved its highest increase since January 2023. As BNB Chain increases its liquidity and makes transactions easier to track, USD1 stands a good chance to lead BNB Chain ahead of Solana in stablecoin adoption and possibly change the smart contract platform rankings.