The New York Times: USD1 Has Become the Trump Family’s Crypto Engine
The New York Times: USD1 Has Become the Trump Family’s Crypto Engine
In early 2025 and into 2026, the U.S. crypto narrative has shifted from “regulation-by-enforcement” to an explicit push for strategic adoption—most visibly through the federal government’s Strategic Bitcoin Reserve initiative. (For the original policy language, see the White House fact sheet on the Strategic Bitcoin Reserve.)
Against that backdrop, a Trump-linked stablecoin—USD1—has expanded rapidly. Reporting and follow-up analysis across major outlets describe a clear playbook: stablecoins can act as a political narrative vehicle, a distribution business, and—most importantly—a cashflow engine powered by Treasury yields. For additional context on David Yaffe-Bellany’s investigations into the Trump family’s crypto activity, a helpful public discussion is PBS’s Amanpour and Company segment featuring Yaffe-Bellany.
This article breaks down why USD1 matters, how exchange distribution can accelerate stablecoin growth, and what users should pay attention to—from on-chain concentration risks to the evolving U.S. stablecoin regulatory framework.
USD1 in one sentence: a stablecoin business model wearing a political jacket
Stablecoins are often described as “digital dollars,” but their economics look more like a financial utility:
- Users want a dollar-pegged token that moves 24/7 across blockchains.
- Exchanges want deep liquidity and cheap settlement rails.
- Issuers typically earn revenue from the interest on reserve assets (commonly short-dated U.S. Treasuries and cash equivalents), minus operating and distribution costs.
USD1 entered this arena with two powerful tailwinds:
- A friendlier U.S. policy climate for crypto and stablecoins (even if the legislative details remain contested).
- Immediate access to global distribution channels, as multiple reports tie USD1’s growth to exchange-driven adoption dynamics.
Mainstream coverage of USD1’s rollout and positioning includes CoinDesk’s overview of USD1 and its custody/reserve setup and CNBC’s reporting on the project’s broader push into the stablecoin market.
Why Binance-level distribution changes everything for a new stablecoin
In stablecoins, technology is table stakes; distribution is the moat.
A new stablecoin can be “fully reserved” and still fail if it can’t win:
- exchange listings and deep trading pairs,
- market-maker support,
- institutional settlement flows,
- and credible cross-chain liquidity.
Multiple reports describe USD1 benefiting from exchange-adjacent momentum and incentives—where the exchange and its ecosystem can seed liquidity, reduce friction, and create default usage paths (for example, using a specific stablecoin for settlement, fee rebates, or preferred margin collateral).
A widely discussed catalyst was the decision to use USD1 as a settlement asset connected to a major Binance-related investment narrative. See:
- The Guardian’s report on USD1 being selected in connection with an Abu Dhabi-backed Binance investment narrative
- Forbes’ deeper look at MGX’s stated rationale and the timing questions around USD1’s “compliance history”
Takeaway: when a top-tier exchange (and its affiliated ecosystem) makes a stablecoin easy to use and economically attractive, adoption can move faster than “organic” DeFi-native growth.
The “crypto engine” thesis: stablecoins scale cashflow, not just market cap
Calling USD1 a “crypto engine” is less about price speculation and more about how stablecoins monetize scale.
If a stablecoin grows from millions to billions in circulating supply, the issuer’s economics can resemble a high-volume financial platform:
- Reserves are invested in low-risk instruments (commonly Treasuries).
- The issuer earns yield on reserves.
- The key drivers become: circulating supply, duration strategy, custodial structure, distribution costs, and redemption behavior.
As of February 2026, market data trackers show USD1 at multi-billion scale. For a snapshot of current circulation/market cap and on-chain holder counts, see CoinMarketCap’s USD1 page.
What users should watch:
A stablecoin’s headline market cap is not the whole story—concentration matters. If a small number of entities control a large percentage of supply (e.g., exchanges, treasury wallets, or a few large holders), liquidity can look “deep” until it suddenly doesn’t.
Political proximity is a distribution advantage—and a risk surface
In 2025–2026, crypto has become a front-row political topic again, including debates about conflicts of interest, disclosure, and policy influence.
Recent reporting has focused on foreign capital involvement and governance questions around Trump-linked crypto ventures. For broader context:
- The Washington Post’s coverage of UAE-linked investment into World Liberty Financial and conflict-of-interest concerns
- The Wall Street Journal’s reporting on the Trump family’s crypto business expansion and the USD1 pivot
Whether readers interpret this as “pro-innovation realignment” or “ethical hazard,” the market implication is straightforward:
- Regulatory outcomes can reprice stablecoin risk quickly.
- Banking access, reserve rules, and permitted activities (like yield-sharing) can change issuer economics overnight.
The U.S. stablecoin regulation question: transparency vs. innovation tradeoffs
For stablecoins, the next phase of U.S. regulation is not a sideshow—it’s the main event.
One legislative direction emphasizes:
- 1:1 reserve requirements,
- redemption policy disclosures,
- permitted issuer categories,
- and explicit treatment of payment stablecoins under financial/AML rules.
A concrete reference point is the STABLE Act of 2025 (H.R.2392) on Congress.gov, which outlines a federal framework for payment stablecoins, reserve requirements, issuer eligibility, disclosures, and a moratorium on certain endogenous-collateral designs.
Why users should care:
Regulation doesn’t only affect issuers—it affects where stablecoins can be listed, how they can be used in apps, and whether certain incentives (including yield-like rewards) are allowed.
What to verify before you hold (or rely on) any stablecoin
Regardless of issuer branding, treat stablecoins as financial products. Before using USD1—or any “digital dollar”—consider a due diligence checklist:
1) Reserve composition and custody
Look for clear statements on:
- what backs the token (Treasuries, cash, repos, etc.),
- who custody providers are,
- and whether audits/attestations are published with meaningful detail.
A baseline overview of USD1’s stated backing and custody arrangements has been reported by outlets such as CoinDesk and CNBC.
2) Supply concentration and on-chain flows
A stablecoin can be fully backed and still be fragile if:
- liquidity is dependent on one venue,
- a few wallets dominate supply,
- or redemptions are operationally constrained.
Track holders and supply changes using reputable dashboards (for market-level data, see CoinMarketCap’s USD1 page).
3) Chain and contract risk
USD1 has been associated with deployment across major networks mentioned in mainstream coverage (for example, Ethereum and BNB Chain). Every chain introduces:
- smart contract risk,
- bridge/interop risk (if users move between chains),
- and ecosystem-specific censorship or operational assumptions.
4) Redemption reality (not just “1:1” marketing)
In stress scenarios, the most important question is not “Is it supposed to redeem?” but:
- Who can redeem?
- How quickly?
- Under what limits and compliance checks?
- What happens if redemptions spike?
Self-custody matters more as stablecoins become political and institutional
As stablecoins become more intertwined with:
- exchange settlement,
- institutional flows,
- and policy debates,
the case for separating asset ownership from platform access gets stronger.
A practical approach many users take is:
- keep spending/trading balances on platforms,
- keep savings/treasury balances in self-custody,
- and set up operational security for keys, backups, and transaction hygiene.
If you’re using USD1 (or other stablecoins) across Ethereum and BNB Chain, a hardware wallet can reduce key-exposure risk by keeping private keys offline. OneKey is designed for self-custody workflows, supporting multi-chain asset management while helping isolate signing from internet-connected devices—useful when your risk model includes not just market volatility, but also platform, governance, and policy-driven uncertainty.
Closing thoughts
USD1’s rise highlights a broader 2025–2026 crypto truth: the next stablecoin leaders won’t win on “being a dollar,” they’ll win on distribution, credibility signals, and regulatory survivability. When a stablecoin is closely linked to a political brand and amplified through major exchange ecosystems, growth can be rapid—but scrutiny and tail risks scale just as fast.
For users, the playbook is simple:
- verify reserves and redemption mechanics,
- watch concentration and dependency on single venues,
- understand chain-level risks,
- and practice self-custody for funds you can’t afford to have frozen, misrouted, or operationally trapped.
