The Trump family supports stablecoin USD1 supply exceeding 2.4 billion, Fed officials' heavy speeches serve as a catalyst | New trends in the crypto assets market

The World Liberty Financial (WLFI) stablecoin project, supported by the Trump family, completed a $205 million USD1 token issuance on August 22, raising the total supply to $2.4 billion, marking the largest single-day increase since its launch in April. Notably, this issuance coincided with a speech by The Federal Reserve Board of Governors member Christopher Waller supporting stablecoin policies, sparking speculation in the market about Central Bank policy signals boosting the development of private encryption projects. As the fastest-growing compliance stablecoin globally, USD1 has become the sixth-largest stablecoin and is actively positioning itself in the sovereign fund and institutional treasury sector.

[Policy Tailwind: The Fed's Shift in Attitude Promotes the Explosion of Stablecoins] On August 21, at a blockchain seminar in Wyoming, Fed Governor Waller delivered what is referred to in the industry as the "most friendly" speech on encryption policy by a Central Bank official. He explicitly stated that there is "no need to fear" digital payments and decentralized finance, believing that stablecoins and blockchain transactions operate under the same principles as debit card payments. He particularly praised the "American Stablecoin Innovation Act" (GENIUS Act) as an "important step" towards widespread adoption.

This policy indicator is significant: Waller is seen as the most likely candidate to succeed Powell as Chair of the Fed after his term ends in 2026, and his views are influencing U.S. monetary policy making. Recently, the Fed has continuously signaled loosening: in April, it revoked the 2022 guidance that prohibited banks from participating in stablecoin activities; in August, it canceled the supervision plan for encryption businesses; Vice Chair Michelle Bowman even proposed allowing Fed employees to hold a small amount of cryptocurrency to deepen technical understanding.

[Market Landscape: The Rise Path of USD1 as the Sixth Largest Stablecoin] According to CMC data, USD1 has quickly climbed to sixth place in the global stablecoin rankings, only behind:

1. Tether (USDT): $167 billion market cap, accounting for 60% market share
2. USD Coin (USDC): $67.4 billion market cap, accounting for 24% market share

Unlike traditional stablecoins that focus on the DeFi space, USD1 uniquely positions itself as a "sovereign-level asset," emphasizing that it is fully backed by US dollars and short-term Treasury bills. Renowned analyst VirtualBacon pointed out that if it can capture a small share of the US Treasury market, the supply of USD1 is expected to exceed 100 billion USD, as it is "specifically designed for Middle Eastern family offices and sovereign wealth funds."

This judgment is supported by data: Goldman Sachs' latest report predicts that the stablecoin market will see a "trillions of dollars" influx, with a trading volume of 7 trillion USD in the last quarter indicating that a financial system transformation is imminent. The U.S. Treasury further estimates that by 2028, the stablecoin market will reach a scale of 2 trillion USD.

[Strategic Layout: The Ecosystem Construction of World Liberty] Trump family's encryption flagship project World Financial is advancing three major strategies:

1. Establish a listed treasury company: Plan to raise $1.5 billion to establish a licensed treasury company that specializes in managing WLFI Tokens and cash reserves. Investment documents show that Donald Trump Jr. and Eric Trump will join the board.
2. Ethereum Asset Strategic Accumulation: According to Nansen data, the WLFI treasury holds $548 million in assets, of which $212 million (39%) is in USD. Since May, a total of 77,226 ETH (worth $296 million) has been purchased, with unrealized gains of $41.7 million.
3. DeFi Ecosystem Construction: In June, the USD1 cross-chain bridge function was opened, and the Swap and lending modules will be launched soon. On June 31, $10 million was invested in Falcon Finance to establish the first on-chain liquidity and yield general collateral infrastructure.

[Industry Trend: The Macroeconomic Background of Stablecoins' Continuous 22-Month Rise] The explosive growth of USD1 is part of the overall expansion cycle of the stablecoin market. Industry data shows that:

• July marks the 22nd consecutive month of positive market growth.
• The total market capitalization rises to 261 billion USD.
• The quarterly trading volume reached 7 trillion USD

This rise is driven by a dual force: on one hand, traditional financial institutions are seeking to upgrade with blockchain technology, and on the other hand, emerging market countries are using stablecoins to cope with local currency fluctuations. Countries like Brazil and Argentina have recently significantly increased their allocation of stablecoins, creating a new trend of cross-sovereign digital currency flow.

[Conclusion] The USD1 stablecoin supported by the Trump family completed a 205 million rise in issuance within 24 hours, marking a milestone in the project's own development and reflecting the explosive potential of private encryption projects against the backdrop of a shift in Fed policy. With the change in attitude of central bank officials like Waller and the advancement of the GENIUS Act, the U.S. is gradually building a regulatory framework for stablecoins. For investors, the emergence of sovereign-level stablecoins not only signifies the opening of new investment avenues but also indicates that the integration of traditional finance and the crypto world is entering deeper waters. In the next six months, the financing progress of WLFI listed treasury companies and the adoption rate of USD1 by institutions will become key indicators for assessing the potential of this sector.