In June 2025, the crypto world witnessed a pivotal shift with the official launch of USD1, a stablecoin backed by the Trump family, on the TRON network. This move was widely interpreted as a direct challenge to the long-standing duopoly of USDT and USDC, sparking intense debate across the industry. Could this new alliance redefine the global stablecoin landscape? Is TRON equipped to host a true "third pole" in the decentralized finance ecosystem?
A high-profile #SunFlash roundtable hosted on X Space brought together leading industry KOLs to dissect this development. Experts examined USD1’s technical architecture, asset backing, regulatory strategy, and capital trajectory, while evaluating whether TRON has the infrastructure and ecosystem depth to support a major new player in the stablecoin race.
The integration of USD1 into TRON marks more than just another blockchain deployment—it signals a strategic evolution. From being known primarily as a “stablecoin pipeline,” TRON is now positioning itself as a full-fledged financial infrastructure layer. The success of USD1 isn't just about one token's survival; it’s a test of whether TRON can emerge as a credible alternative in an increasingly centralized stablecoin market.
Let’s explore the key insights from the discussion and assess the real potential behind the USD1 + TRON alliance.
USD1: A Game-Changer Challenging the USDT and USDC Duopoly
The global stablecoin market has long been dominated by two giants: Tether’s USDT and Circle’s USDC, which together control nearly 90% of total market share. However, panelists agreed that both face structural bottlenecks—opening the door for new entrants like USD1 to disrupt the status quo.
Structural Weaknesses in USDT and USDC
Big Dipper highlighted growing regulatory pressures, particularly under the EU’s MiCA framework, which requires strict licensing and full backing of reserve assets. This could force exchanges like Coinbase to delist USDT pairs in Europe. Moreover, despite claims of 1:1 backing, USDT’s issuance often fluctuates based on market demand, raising transparency concerns.
Meanwhile, USDC—though praised for its regulatory compliance and full backing by U.S. Treasury bills—faces criticism for overreliance on the traditional financial system. As Beidou pointed out, this creates systemic risk: changes in U.S. policy or banking instability could freeze or depeg USDC, undermining trust among global users.
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Rising Demand for a Third Pole
With innovation stagnating among incumbents due to regulatory constraints, profitability models, and limited product evolution, Peter Pan argued that market stagnation is “inevitable.” This creates fertile ground for new stablecoins offering differentiated value propositions.
The future, according to industry consensus, may not belong to one or two dominant players—but to a multi-layered, hierarchical stablecoin ecosystem that reflects the broader trend toward financial decentralization and multipolarity.
Core Advantages of USD1: Political Backing and Capital Resilience
ZR Toad emphasized USD1’s multi-chain deployment and flexible issuance mechanism, enabling it to serve diverse use cases—from cross-border remittances to DeFi yield generation.
Peter Pan noted that USD1’s so-called “sovereign independence” has two sides:
- On one hand, its decentralized governance committee offers partial censorship resistance by reducing reliance on any single nation.
- On the other, its reserves remain heavily tied to U.S. debt instruments, meaning it still operates within the dollar hegemony framework.
For users prioritizing censorship resistance, USD1 presents a stronger alternative than USDC. But for those seeking pure fiat-backed stability, USDC remains preferable.
Yet, crypto industry voices countered that USDC’s high compliance makes it ideal for institutional adoption—but also exposes it to political risks (e.g., asset freezes due to U.S. regulatory shifts). In contrast, USD1 leverages political capital to navigate regulatory hurdles, making it better suited for diversified cross-border settlement needs.
Compared to USDC, USD1 offers greater sovereign independence and global applicability, positioning it as a valuable addition to the future of inter-chain, cross-border financial ecosystems.
USD1 + TRON: Building a Next-Gen Stablecoin Ecosystem
In 2025’s competitive landscape—defined by both regulatory differentiation and technological breakthroughs—TRON provides USD1 with a unique advantage: a high-performance blockchain capable of 2,500+ TPS, ultra-low transaction fees, rich dApp ecosystems, and built-in compliance tools.
Leveraging TRON’s technical infrastructure and the Trump family’s political capital, USD1 achieved rapid adoption in emerging markets like Southeast Asia and Africa, reaching over $2.1 billion in circulation within months.
Why USD1 Chose TRON: A Multi-Layered Strategic Fit
BDStar outlined three core reasons why TRON emerged as USD1’s primary chain:
1. Dominance in High-Frequency Payment Scenarios
TRON’s high throughput and low costs make it ideal for B2B settlements, cross-border payments, and micro-transactions. Combined with its robust ecosystem of wallets, exchanges, and merchant tools, TRON enables strong user retention among retail investors and small businesses.
2. Regulatory Adaptability Through Innovation
TRON employs Bubblemaps V2—a compliance traceability system that anonymizes TRON addresses while storing necessary regulatory metadata off-chain. This “visual anonymity” model satisfies both GDPR privacy standards and FATF travel rule requirements. Notably, it has received strong endorsement from the European Blockchain Observatory.
3. Infrastructure Efficiency
As Bull Demon King explained, TRON functions like a “financial highway.” Its tech stack—including Energy Promise Mechanism—drives transfer costs close to zero while maintaining high concurrency. This Visa-level efficiency gives TRON a decisive edge in merchant settlements and international fund transfers.
TRON’s Expanding Ecosystem: The Foundation for Stablecoin Growth
TRON’s rise as a stablecoin battleground stems from its dual strength: a low-cost, high-efficiency technical architecture and an aggressively expanding DeFi ecosystem.
Since inception, TRON has built a closed-loop financial ecosystem:
- Inter-chain protocol: BitTorrent
- Lending platform: JustLend
- DEX: SunSwap
- Stablecoin-focused AMM: SunCurve
- Meme trading hub: SunPump
- NFT marketplace: APENFT
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This diverse application matrix allows stablecoins like USD1 to move beyond mere trading tools into real-world utility—payments, income generation, and asset management.
Additionally, TRON has secured financial licenses in the UAE, EU, and Singapore—critical milestones that enable compliant global expansion.
“TRON has built the world’s most mature on-chain stablecoin financial environment,” said one panelist. “It’s transforming stablecoins from trading vehicles into a unified ‘earn-pay-manage’ financial operating system.”
USD1 and USDD: A Synergistic Dual-Token Model
TRON already hosts major stablecoins like USDT, USDD, and USDJ—with total on-chain stablecoin supply nearing $80 billion. The addition of USD1 enriches this ecosystem further, creating a multi-tiered, complementary structure.
Peter Pan described TRON as a “stablecoin supermarket”:
- USD1 serves compliant institutional flows
- USDD caters to high-yield DeFi demand
- USDT remains the dominant payment rail
All three share liquidity pools, enabling seamless capital flow.
The synergy between USD1 and USDD is particularly strategic:
- USD1 brings regulatory credibility and auditability
- USDD offers algorithmic flexibility and censorship resistance for native crypto users
BDStar emphasized that USD1, USDD, and TRX Vault form a virtuous cycle:
- USD1 anchors trust
- USDD maintains value stability through dynamic algorithmic adjustments
- TRX Vault lubricates global capital flows
Together, they enable a closed-loop model: compliant on-ramp → on-chain circulation → yield generation → off-ramp settlement.
Bull Demon King concluded: “TRON isn’t just building a stablecoin mall or a settlement layer—it’s creating digital financial biodiversity. USD1 connects traditional finance, USDD powers DeFi value creation, and TRX Vault facilitates global capital mobility.”
Frequently Asked Questions (FAQ)
Q: What is USD1?
A: USD1 is a politically backed stablecoin launched by World Liberty Financial, associated with the Trump family. It aims to offer an alternative to USDT and USDC with enhanced sovereign independence and global applicability.
Q: Why did USD1 choose TRON?
A: TRON offers high transaction speed (2500+ TPS), near-zero fees, strong DeFi integration, and innovative compliance solutions like Bubblemaps V2—making it ideal for scalable, global stablecoin adoption.
Q: Is USD1 fully backed like USDC?
A: While specific reserve details are evolving, early reports indicate USD1 holds reserves in U.S. Treasuries and cash equivalents. However, unlike USDC, it incorporates decentralized governance to reduce single-point control risks.
Q: Can TRON really become a third pole in stablecoins?
A: With nearly $80 billion in on-chain stablecoin circulation and a mature ecosystem spanning payments, DeFi, and NFTs, TRON has the infrastructure. Success depends on sustained innovation and regulatory navigation.
Q: How does USD1 differ from USDD?
A: USD1 is fiat-collateralized with strong compliance focus; USDD is an algorithmic stablecoin native to TRON designed for DeFi use. Together, they represent a balanced “regulation + decentralization” model.
Q: Is USD1 available globally?
A: Yes—thanks to TRON’s multi-jurisdictional licensing and privacy-preserving compliance tools, USD1 is accessible in regions including Southeast Asia, Africa, and parts of Europe.
Conclusion: Redefining Digital Finance Through Diversity
At the intersection of political capital and technological innovation, the USD1 + TRON collaboration is reshaping stablecoin power dynamics. As agreed by roundtable experts, TRON has cultivated an unprecedented “species diversity” in digital finance through its closed-loop liquidity architecture and expansive ecosystem.
If USD1 can maintain equilibrium between political empowerment, transparency, and compliance—and if TRON continues strengthening its technical backbone and DeFi footprint—this alliance may fulfill a greater mission: breaking the monopoly of single-currency dominance and advancing blockchain from a trading tool to a global financial operating system.
The next decade of digital finance won’t be defined by one winner—but by ecosystems that integrate choice, resilience, and inclusivity. And right now, TRON is leading that transformation.