What to Know:
- USD1 supply jumped by over 45.6 million tokens within hours after Binance launched a limited time promotion offering up to 20 percent annual returns, lifting the stablecoin’s market capitalization above $2.79 billion.
- The Binance Boost Program channels USD1 into Simple Earn Flexible Products, with capped bonus yields and real time accruals.
- Momentum also came from a new partnership with Velo, which plans to integrate USD1 into its PayFi network to support payments, foreign exchange, and stablecoin based settlement across Asia focused financial infrastructure.
The supply of USD1 rose sharply on Tuesday after Binance rolled out a high yield promotion tied to the stablecoin, triggering a rapid inflow of new tokens into circulation. According to CoinGecko data, more than 45.6 million USD1 tokens were issued within hours of the announcement, and lifted the stablecoin’s total market capitalization above $2.79 billion by the afternoon.
Binance Promotion News Triggers USD1 Rally
The surge followed Binance’s launch of a limited time promotion offering annual returns of up to 20 percent on USD1 deposits, capped at 50,000 tokens per user. The program went live at noon and immediately drew attention from yield seeking users, pushing USD1 activity to one of its most active issuance windows since launch.
USD1 is a U.S. dollar backed stablecoin issued by World Liberty Financial, a crypto project backed by members of the Trump family. The token is designed to maintain a one to one peg with the dollar and is issued through BitGo Trust Company, which provides custody and compliance services aimed at institutional users.
In a statement, Binance said the initiative is part of its USD1 Boost Program, which aims to increase participation in the asset through Simple Earn Flexible Products. Under the structure, users who subscribe during the promotion period can receive bonus tiered returns alongside real time accruals. The offer runs from December 24, 2025, through January 23, 2026, with subscriptions accepted on a first come, first served basis.
The exchange said bonus rewards will be distributed daily to users’ spot accounts, while real time returns accrue minute by minute within Earn accounts. The minimum subscription is set at 0.01 USD1, while the maximum allocation per user is capped at two million tokens. Returns above the 50,000 USD1 threshold fall back to the base rate once the bonus tier limit is exceeded.
Users can tap into USD1 via Binance’s Buy Crypto page or the company’s peer to peer channels, accepting payments with cards and digital wallets to bank transfers. Upon purchase, the token can be deposited into Simple Earn Flexible products for additional promotional benefits.
Apart from the Binance powered rise in crypto supply, USD1 was boosted by a new deal with Velo, a payments centric blockchain protocol recently announced.
Velo confirmed a strategic partnership with World Liberty Financial to implement USD1 into its PayFi platform that serves actual financial use cases like payments, foreign exchange, and digital asset settlement. They expect integration to support liquidity and settlement functions throughout Velo’s network, which is constructed as a closed loop system connecting consumer payments to institutional financial rails. It is said USD1 will constitute a settlement asset in the ecosystem supporting stablecoin based transfers and liquidity flows. Velo’s architecture is intended to leverage the traditional finance and blockchain networks based on low friction to transfer value.
The protocol introduces USD1 for increased settlement and liquidity support as well as consumer-facing apps distributed via loyalty programs and super app services. The collaboration is also in line with Velo’s emphasis on Asia, where it is expanding its infrastructure for mobile first economies that have steep cross border transaction flows.
Velo’s architecture is designed to move value between traditional finance and blockchain networks with minimal friction. By adding USD1, the protocol aims to improve settlement reliability and liquidity efficiency while supporting consumer facing applications distributed through loyalty programs and super app platforms.
The partnership also aligns with Velo’s focus on Asia, where it is building infrastructure for mobile first economies with high cross border transaction volumes. Backed by CP Group, one of the region’s largest conglomerates, Velo has positioned its PayFi model around everyday financial activity rather than short term trading behavior.
USD1’s design as a regulated, dollar backed stablecoin fits that strategy. Issued through BitGo Trust Company, the token is structured to meet compliance and custody standards required by enterprise users, while remaining accessible for consumer payments and digital asset transfers.
The combined impact of Binance’s yield campaign and Velo’s integration has placed USD1 under close market watch.
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