USD1 Stablecoin Surges $150 Million as Binance Launches New Rewards Program
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
Source: Coinmarketcap
Updated: Dec 27 2025
Should l Buy USD1?
- Stablecoin Surge: The USD1 stablecoin saw a $150 million increase on December 24 due to Binance's new rewards program, bringing its total value to $2.89 billion, indicating a strong market demand for high-yield assets that may attract more investors to stablecoins.
- Rewards Program Impact: Binance's new initiative offers a 20% annual return for deposits over $50,000, running until January 23, 2026, which not only enhances USD1's market position but also potentially encourages more funds to flow into stablecoins, reducing reliance on volatile assets.
- DeepSnitch AI Advantage: DeepSnitch AI provides real-time utility tools, having raised over $900,000 in its presale, with a token launch expected in January; analysts believe the token could grow 50x to 100x post-launch, showcasing its potential in a competitive market.
- Ethereum Market Dynamics: Ethereum's price rose 4% in the past few hours, but trading volume fell by 24%, and while long-term predictions suggest a 75% growth potential, investors may prefer DeepSnitch AI for quicker returns compared to Ethereum's slower growth trajectory.
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Technical Analysis for USD1
Technical Sentiment Analysis for World Liberty Financial USD (USD1) As of , World Liberty Financial USD (USD1) is exhibiting a Neutral technical sentiment. Our proprietary analysis, which aggregates 5 technical signals, shows that 2 indicators are flashing buy, while 3 are indicating sell.
Momentum Indicators: RSI, MACD & Overbought/Oversold Status Currently, the Relative Strength Index (RSI) for USD1 stands at -, which suggests a Neutral condition. Meanwhile, the MACD (12, 26) indicator is at -, providing a Neutral signal for short-term momentum. Other oscillators like the Stochastic Oscillator at - and the Commodity Channel Index (CCI) at - further confirm a - outlook for the stock.
Support, Resistance & Moving Averages From a structural perspective, USD1 is trading below its 60-day moving average of $- and below its 200-day long-term moving average of $-. Key price levels to watch include the immediate resistance at $- and strong support at $-. A break above $- could signal a bull continuation, while falling below $- may test the next Fibonacci floor at $-.
World Liberty Financial USD (USD1) Support & Resistance Level
| Name | S3 | S2 | S1 | Pivot Points | R1 | R2 | R3 |
|---|---|---|---|---|---|---|---|
| Classic | 0.996 | 0.997 | 0.999 | 1 | 1.002 | 1.004 | 1.005 |
| Fibonacci | 0.997 | 0.999 | 0.999 | 1 | 1.002 | 1.002 | 1.004 |
About USD1
What is USD1?
USD1 is a fiat-backed digital asset, designed to maintain a 1:1 equivalence with the U.S. dollar. Launched in April 2025 by World Liberty Financial (WLFI), a financial technology firm headquartered in Miami, Florida, USD1 aims to streamline digital transactions by providing seamless fungibility between fiat currency and digital assets. The stablecoin is issued and legally managed by BitGo Trust Company, a regulated trust entity based in South Dakota, ensuring full compliance with U.S. regulatory standards.Unlike traditional stablecoins, USD1 seeks to reduce friction in converting between fiat and crypto by eliminating transaction fees on minting and redemption, thereby making it simpler for users to enter and exit digital asset markets without financial penalties. Users can deposit U.S. dollars directly into BitGo-managed accounts to mint USD1 tokens, and similarly redeem their tokens for fiat currency with minimal delay, typically within two business days.USD1’s underlying reserves are maintained in high-quality, liquid assets such as short-term U.S. Treasury bills, government deposits, and money market funds managed by reputable financial institutions like Fidelity Investments. These reserves are audited regularly, and independent reports are published quarterly to confirm the ongoing 1:1 backing of each token issued. USD1 also incorporates Chainlink’s Proof of Reserves (PoR) mechanism, providing transparent, real-time, on-chain verification of reserve balances, significantly mitigating counterparty risk.Technical Infrastructure and Security
USD1’s technical operations are overseen by BitGo, a leading provider of institutional-grade digital asset custody solutions. The smart contract infrastructure was audited by Peckshield, identifying no critical vulnerabilities, further reinforcing the reliability of the system. Transactions involving USD1 require multi-signature approvals, distributed across geographically dispersed signers to enhance operational security and mitigate single points of failure.Use Cases and Adoption
USD1 is intended for broad adoption within both retail and institutional financial ecosystems:Retail Payments: Users can spend USD1 through WLFI-issued debit cards at point-of-sale terminals, seamlessly exchanging USD1 tokens for goods and services.Institutional Applications: USD1 provides reliable liquidity within institutional platforms, supporting trading pairs on centralized and decentralized exchanges.DeFi Integration: The token is compatible with lending, borrowing, and yield generation platforms, enabling users to participate actively in decentralized finance.With robust regulatory compliance, transparent reserve backing, and secure technical infrastructure, USD1 presents itself as a stable, trusted digital representation of the U.S. dollar suitable for global adoption in digital financial markets.What Makes USD1 Unique?
USD1 differentiates itself from other major asset-backed stablecoins through several distinct features:Zero-Fee Minting and Redemption
Unlike many asset-backed stablecoins that charge fees for converting fiat to tokens and vice versa, USD1 offers completely fee-free minting and redemption. Users can seamlessly move between USD1 tokens and U.S. dollars without incurring any costs, effectively eliminating friction that traditionally impacts stablecoin users.Institutional Custody and Regulatory Compliance
USD1 is legally issued and managed by BitGo Trust Company, a regulated South Dakota trust. This institutional-grade custody and compliance framework exceeds industry standards, ensuring rigorous adherence to U.S. regulatory requirements, including comprehensive AML/KYC practices. Many other stablecoins operate through offshore entities with varying levels of regulatory oversight.Dynamic Liquidity Management
The USD1 reserve strategy involves dynamically adjusting liquidity based on real-time redemption patterns, using a combination of highly liquid cash holdings and short-term U.S. Treasury securities managed by Fidelity Investments. This approach optimizes liquidity and yield generation while safeguarding rapid redemption capabilities, even during periods of market volatility.
About the author
Ohris M. Greyoon
Ohris M. Greyoon holds a Master’s in Computer Science from MIT and has 10 years of experience in blockchain technology and cryptocurrency markets. A pioneer in decentralized finance (DeFi) analysis, he leads Intellectia’s Crypto News, offering cutting-edge insights into digital assets.
