In June 2025, the launch of USD1—the stablecoin backed by the Trump family—on the TRON blockchain sent shockwaves across the crypto landscape. Positioned as a direct challenger to the long-dominant USDT and USDC, this move ignited widespread speculation: Could USD1, powered by TRON’s robust infrastructure, break the duopoly and emerge as the world’s third major stablecoin?
The conversation gained momentum during a high-profile #SunFlash roundtable discussion hosted on X Space, titled “Stablecoin New Order: USD1 + TRON – The Rise of the Third Pole?” Industry experts convened to dissect whether USD1 has the technical, financial, and regulatory foundation to succeed—and whether TRON can truly serve as the backbone for a new era of decentralized finance.
This article unpacks the key insights from that discussion, exploring how USD1 and TRON are reshaping stablecoin dynamics through innovation, ecosystem synergy, and strategic positioning.
The Rise of USD1: Challenging the USDT-USDC Duopoly
For years, USDT and USDC have dominated the stablecoin market, collectively holding nearly 90% of total market share. Yet, structural weaknesses in both are becoming increasingly apparent—opening the door for new contenders like USD1.
Limitations of USDT and USDC
As pointed out by analyst Beidouxing, regulatory pressures are mounting. Under the EU’s MiCA framework, stablecoin issuers must obtain licenses and maintain fully reserved backing. This could force platforms like Coinbase to delist USDT in Europe due to compliance concerns. Moreover, despite claims of 1:1 dollar backing, USDT’s reserve transparency remains a persistent concern.
USDC, while more compliant with its 100% cash and U.S. Treasury reserves, faces criticism for overreliance on traditional financial systems. “It's secure,” said Beidouxing, “but also vulnerable to centralized policy risks—like asset freezes during geopolitical tensions.”
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Emerging Demand for a Third Option
With innovation stagnating among incumbents, demand for alternatives is growing. Analyst Xiaofeixia noted that the twin giants are hitting ceilings in regulatory adaptability, profit sustainability, and product evolution—three critical barriers that new entrants can exploit.
Crypto commentator Bijie Xiake predicted a shift toward a multi-layered stablecoin ecosystem, where different tokens serve distinct use cases. “We’re moving beyond one-size-fits-all,” he said. “The future belongs to specialized, context-aware stablecoins that cater to regional needs, compliance requirements, and user preferences.”
USD1’s Strategic Edge: Political Capital Meets Financial Flexibility
ZR Chan emphasized USD1’s multi-chain deployment and flexible issuance model as key advantages. But it’s the political backing and sovereign independence narrative that sets it apart.
Xiaofeixia offered a nuanced view: While USD1 uses a decentralized governance council to reduce single-jurisdiction control—making it more resistant to censorship—it still relies heavily on U.S. Treasury assets. “It’s not truly脱离dollar hegemony,” he cautioned. For users prioritizing legal certainty, USDC remains stronger. But for those seeking抗审查 (anti-censorship), USD1 offers a compelling alternative.
Bijie Xiake countered that USDC’s rigid compliance makes it vulnerable to sudden U.S. regulatory shifts. In contrast, USD1 leverages political influence to navigate global regulations more nimbly—ideal for cross-border trade and emerging markets.
“USD1 isn’t just another stablecoin—it represents a new paradigm of sovereign-flexible finance,” Bijie Xiake stated. “Its global applicability makes it uniquely suited for multinational DeFi ecosystems.”
Why TRON? The Infrastructure Behind USD1’s Ascent
The success of any stablecoin hinges not just on its design—but on the network it runs on. In 2025, TRON stands out with over 2,500 TPS, negligible fees, deep DeFi integration, and proven resilience against regulatory crackdowns.
Beidouxing highlighted three reasons why TRON was chosen as USD1’s primary chain:
1. Dominance in High-Frequency Payment Use Cases
TRON’s speed and low cost make it ideal for B2B settlements, remittances, and micropayments. Its thriving ecosystem of wallets, exchanges, and merchant tools fosters strong user retention—especially among retail users and SMEs in Southeast Asia and Africa.
2. Regulatory Adaptability via Bubblemaps V2
TRON employs an innovative "visible anonymity" system called Bubblemaps V2. While addresses remain pseudonymous, metadata layers store KYC-relevant information off-chain—complying with FATF travel rule requirements without compromising privacy.
This hybrid approach has earned recognition from the European Blockchain Observatory, balancing GDPR compliance with financial transparency.
3. Financial Superhighway Architecture
As explained by Niumo Wang, TRON functions like a “financial highway.” Its energy-staking mechanism eliminates gas fees for most users while maintaining high throughput—offering Visa-level performance at near-zero cost.
“This isn’t just about transactions,” Niumo said. “It’s about enabling real-time capital flow at scale—exactly what global commerce needs.”
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TRON’s Expanding Ecosystem: A Foundation for Stability
TRON isn’t just fast—it’s comprehensive. ZR Chan outlined its ecosystem milestones:
- Cross-chain interoperability via BitTorrent protocols
- Lending markets like JustLend
- DEX platforms including SunSwap and SunCurve (optimized for stablecoin swaps)
- Meme coin incubation via SunPump
- NFT marketplace APENFT
Together, these form a fully integrated stablecoin application matrix—turning TRON into more than a payment rail.
Bijie Xiake put it clearly:
“TRON has evolved from a transaction layer into a full-stack financial operating system—where stablecoins don’t just move value, but generate yield, enable credit, and power asset management.”
Regulatory progress further strengthens its position. With licenses secured in the UAE, EU, and Singapore, TRON is now legally equipped for global expansion.
A Multi-Stablecoin Future: USD1, USDD, and Beyond
Today, TRON hosts over $80 billion in circulating stablecoins—including USDT, USDJ, and its native algorithmic stablecoin USDD. The addition of USD1 deepens this diversity.
Xiaofeixia described TRON as a “stablecoin supermarket”:
- USD1: Serves regulated institutions and compliance-sensitive users
- USDD: Caters to DeFi natives seeking censorship resistance
- USDT: Maintains dominance in peer-to-peer payments
These coexist through shared liquidity pools and seamless swapping mechanisms.
Bijie Xiake highlighted the dual-track model:
“USD1 brings auditability and institutional trust; USDD offers algorithmic agility and decentralization. Together, they cover both ends of the spectrum.”
Beidouxing added that USD1, USDD, and TRX Vault are forming a powerful triad:
- USD1 acts as the compliant on-ramp
- USDD enables on-chain value preservation
- TRX Vault facilitates yield generation and liquidity provisioning
In cross-border transactions, this enables a full cycle: compliant entry → frictionless transfer → yield-bearing storage.
Niu Mo concluded:
“TRON isn’t choosing between centralization or decentralization. It’s creating financial biodiversity—where each stablecoin plays a unique role in a larger ecosystem.”
Final Thoughts: Toward a New Financial Operating System
The convergence of political capital, technical innovation, and ecosystem depth positions USD1 + TRON as more than just a competitor—it's a potential catalyst for systemic change.
If USD1 can maintain transparent reserves while leveraging TRON’s scalability and global reach, it won’t merely compete with USDT and USDC—it may help redefine what a stablecoin should be: not just a digital dollar replica, but a modular component of a borderless financial OS.
As the roundtable consensus suggests:
The future isn’t about one dominant stablecoin—it’s about interoperable layers of trust, each optimized for specific needs.
And in that future, TRON—with its diverse stablecoin ecosystem—may well be the platform where it all begins.
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Frequently Asked Questions (FAQ)
Q: What is USD1?
A: USD1 is a dollar-pegged stablecoin launched by World Liberty Financial, a project associated with the Trump family. It aims to offer a politically balanced alternative to USDT and USDC with enhanced global usability.
Q: Why did USD1 choose TRON?
A: TRON offers high throughput (2,500+ TPS), near-zero transaction costs, mature DeFi integrations, and innovative compliance tools like Bubblemaps V2—making it ideal for mass adoption and regulatory adaptability.
Q: How does USD1 differ from USDC?
A: While both emphasize compliance, USD1 leverages political capital for regulatory navigation across jurisdictions, whereas USDC relies strictly on institutional credibility within Western legal frameworks.
Q: Is USD1 fully backed by reserves?
A: Yes—like other major stablecoins, USD1 claims to maintain dollar-denominated reserves (primarily U.S. Treasuries), subject to third-party audits.
Q: Can USD1 be used outside the U.S.?
A: Yes. Designed for global use, USD1 is gaining traction in emerging markets such as Southeast Asia and Africa due to its low-cost transfers and regulatory flexibility.
Q: What role does USDD play alongside USD1?
A: USDD serves as TRON’s decentralized algorithmic stablecoin, offering censorship-resistant value storage for DeFi users—complementing USD1’s institutional focus with grassroots utility.