Stablecoin wars: The $22 Billion power play

PLUS: Top Airdrops Inside

Author

Cryptopolitan News
May 02, 2025 • Estimated Reading Time: 8 minutes

Hello, and welcome to the Cryptopolitan Daily.

The crypto market never sleeps, and neither do we. Whether it’s breaking news, market shifts, or regulatory updates, we’re here to bring you the insights that matter—fast, sharp, and to the point.

📬 Today’s Byte

• Trump, Sun & Binance: The USD1 power move

• Ripple ups the game: From $5B to $20B

• Stablecoins aren’t just crypto cash anymore.

• BlackRock leads the RWA wave

Market-moving headlines 🔥

Senator Cynthia Lummis said on Friday that the BITCOIN Act legislation she introduced last year is the only way to stop the US from collapsing under its $36 trillion debt. She said the country has no time for weak fixes.

President Donald Trump wants to cut federal government spending by a huge amount. He released a budget plan asking Congress to cut the nation’s overall spending on non-defense programs by more than $163 billion to $557 billion.

Bitcoin ATM installations in Europe are at their all-time high, the latest tracking data shows, with a new machine appearing every day on average.

The new craze for HOUSE token is drawing in high-profile crypto whales and influencers. HOUSE mixes the potential of memes with the craze for tokenized real estate. 

🇦🇪 Trump, Sun & Binance: The USD1 power move

At TOKEN2049 Dubai, Eric Trump, Justin Sun, and WLFI co-founder Zach Witkoff sat on a panel that potentially changed the stablecoin game overnight.

Trump officially announced that USD1, a new stablecoin by World Liberty Financial (WLFI), will be “the official stablecoin” used to close Abu Dhabi-based MGX’s $2B investment into Binance — the largest crypto exchange by spot volume.

That’s a massive endorsement for a token that’s barely out of the gate.

Key context:

  • MGX’s $2B deal gives it a minority stake in Binance

  • Initially, no stablecoin was named — now USD1 leads the charge

  • WLFI publicly includes Donald Trump and his sons as team members

  • USD1 is backed by U.S. dollar deposits, short-term Treasurys, and other cash equivalents

  • Custody handled by BitGo, a reputable crypto custodian

This isn't just another stablecoin. It creates a direct link between the Trump name, Justin Sun's TRON, and the world's largest crypto exchange.

Trump highlighted what makes USD1 different:

  • Backed by short-term US treasuries and cash

  • Designed for "transparency and consumer safety"

  • Positioned as a compliance-first stablecoin

The move reflects a larger ambition: to position USD1 as a global, regulated alternative to the likes of USDT and USDC. 

When major political families and billion-dollar funds enter stablecoins, it signals mainstream adoption is accelerating. USD1 isn't just targeting crypto users - it's aiming for the global payments infrastructure that powers commerce everywhere.

💼 Ripple ups the game: From $5B to $20B

While WLFI makes its play for relevance, Ripple is going straight for control.

After a rejected $5B offer to acquire Circle — the issuer of USDC, the world’s #2 stablecoin — Ripple has now reportedly upped its bid to over $20 billion, per Bloomberg.

Why?

Because Ripple isn’t just trying to launch a stablecoin (they already did that with (RLUSD) — they want to own the infrastructure.

Ripple’s multi-pronged strategy:

  • Raised its Circle offer from $5B to $20B

  • Launched RLUSD, a compliant, institutional-focused stablecoin

  • Acquired Hidden Road for $1.25B — a non-bank prime broker processing $3T/year

  • Embedded RLUSD into Ripple Payments for global settlements

If the deal goes through, Ripple would control:

  • USDC with ~$61 billion in market cap

  • RLUSD now around $316 million in market cap

  • A prime brokerage platform serving 300+ institutions

  • Compliance-heavy pipelines across Middle East, Asia, and beyond

This would give Ripple a near-monopoly on both consumer and institutional stablecoin flows, plus back-end services — positioning it as a financial stack, not just a token issuer.

But the timing is delicate.

Ripple’s IPO aspirations and its legal battle with the SEC are still in motion. Until the lawsuit wraps completely, the Circle deal remains just an offer.

👀 We are covering it live @CPOfficialtx

🧠 Cryptopolitan’s take

Stablecoins aren’t just crypto cash anymore.

They're becoming the foundation layer for global finance — and that’s why $22B is being thrown around like poker chips.

Why this matters:

  • Stablecoins now settle trillions in volume annually

  • They bypass banks, move across borders, and clear instantly

  • USDT and USDC still dominate with 86% market share 

  • New entrants like USD1 and RLUSD are being built for real-world use cases and geo-political leverage

We’re watching the rise of financial operating systems — and everyone wants to be the next Swift, Visa, or Fedwire. But on-chain.

Whether through political brand power (USD1) or institutional infrastructure (Ripple), the battle isn’t about coins — it’s about who owns the new global money layer.

💰 Airdrops: Top picks

We have curated a list of top airdrops to look out for👇

  1. Shardeum (SHM) Airdrop on MEXC

    Reward: Up to 72,000 SHM and 150,000 USDT via Launchpool & Airdrop+ events

  2. Balance (EPT) Launchpool & Airdrop+

    Reward: 6,000,000 EPT and 50,000 USDT via staking, deposits, futures trading, and referrals

  3. WORDT Game Airdrop

    Reward: $17,500 in BNB or SOL

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