Trump-linked USD1 Supply Jumps $150M as Binance Launches 20% Yield Program
Binance announced an incentive program that offers yields of up to 20% on the Trump-linked USD1 stablecoin, and on-chain metrics show the token’s market capitalization jumped roughly $150 million following the news. The program, rolled out Wednesday, appears to have attracted short-term liquidity and new issuance as users chase the high APY.
The move highlights how aggressive yield incentives can rapidly shift capital across stablecoins and centralized platforms. While the boost may increase USD1 adoption and give Binance a competitive edge, it also raises questions about the sustainability and funding sources of such high returns, potential pressure on the peg, and heightened regulatory or redemption risk. Traders and regulators will be watching USD1’s stability and Binance’s disclosures for signs the inflows are durable rather than transient.