USD1 Stablecoin Jumps to $4.9B, Passing PayPal

A Trump-backed stablecoin called USD1 reportedly surged to $4.9 billion in circulation, pushing it past PayPal’s PYUSD in raw issuance. That growth came fast, without a matching surge in public disclosures or third‑party audits. The timing matters as stablecoins move from crypto side projects into mainstream payment tools.

Stablecoins are crypto tokens designed to hold a steady $1 price. Think of them like digital dollars that move at internet speed. When one grows this quickly, it grabs attention from traders, regulators, and anyone who uses crypto as a savings tool.

This jump also lands in the middle of a global race around who controls digital dollars. Governments and corporations want influence. Retail users just want something that works and does not break.

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USD1 is the fastest-growing stablecoin in the industry.

It will soon be among the top 3 stablecoins.

I think $WLFI will follow and reach the top 10 soon. pic.twitter.com/5a1V7gD0Ig

— Peak (@CryptoPeakX) January 26, 2026

USD1 is a dollar‑pegged token linked to a Trump‑aligned project. “Pegged” means one token aims to equal one U.S. dollar at all times. The promise sounds simple. The trust behind it is not.

Circulation means how many tokens exist, not how many people actively use them. A project can mint billions quickly if large holders agree to take them. That is very different from organic demand at coffee shops or online checkouts.

For comparison, PayPal’s PYUSD launched with full brand recognition and compliance teams. Yet USD1 now sits ahead in size. That raises one big question. Who is holding these tokens, and why?

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Why Passing PayPal’s Stablecoin Matters

A major milestone for USD1. We are now larger than PayPal’s digital dollar (PYUSD) and growing into one of the most significant digital dollar platforms in the world.

This isn’t just about crypto. It’s about building the future of global money.

The shift is happening.… pic.twitter.com/j26JlP5kKU

— Eric Trump (@EricTrump) January 23, 2026

PayPal represents the clean, regulated path into crypto dollars. USD1 represents the political path. Size alone does not equal safety, but size does create influence.

Bigger stablecoins get listed faster on exchanges and plugged into DeFi apps. DeFi apps are automated money tools. Think lending markets without banks. That exposure can snowball adoption.

This also feeds into the broader stablecoin competition playing out between governments and private issuers. Control the stablecoin, and you influence how digital dollars move.

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So Should You Care or Stay Away?

Ranking increased ☝️

Daily trading volume is 5 billion USD1, ranking third among stablecoins.

47/3.75B #USD1 https://t.co/jd5HS3Q5Tq 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 the backing lives and who controls the keys.

Stablecoins do play a real role in global finance, from trading to aid distribution, as seen in broader stablecoin adoption efforts. But not every dollar token deserves equal trust.

USD1’s growth sends a signal. Political branding can move billions fast. Whether it can protect everyday users during stress is the test that counts.

For now, watch how regulators respond and whether independent audits appear. In crypto, confidence built in silence rarely lasts.

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Ahmed Balaha

Crypto Journalist

Ahmed Balaha is a journalist and copywriter based in Georgia with a growing focus on blockchain technology, DeFi, AI, privacy, digital assets, and fintech innovation. He has a strong interest in financial literacy and sustainable investing, and he combines these…
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