HTX’s partnership with World Liberty Financial signals a push to rebrand USD1 as more than just a Trump-linked asset. But the bigger question looms: Will traders embrace the stablecoin for its utility, or does its appeal remain tethered to the president’s political brand? Early data suggests an uphill battle.
Summary
- HTX will support USD1’s loyalty rewards program.
- The initiative aims to shift USD1’s image from Trump-linked to utility-driven.
- Despite incentives, USD1’s adoption lags far behind stablecoin leaders like USDT and USDC.
On August 7, crypto exchange HTX announced it would be among the first major trading platforms to integrate World Liberty Financial’s USD1 Points Program, a loyalty initiative launched Thursday to reward users for holding, trading, and staking the stablecoin.
The program is billed as the first global loyalty system designed specifically for stablecoin users, and positions HTX as a key early partner alongside other unnamed platforms. Notably, the collaboration is being pitched as a step toward normalizing USD1 in an industry still wary of its origin story.
Can rewards fix USD1’s adoption problem?
For World Liberty Financial, the loyalty program appears designed to address a core challenge facing USD1: credibility. Since its April launch, the Trump-affiliated stablecoin has struggled to shed its identity as a politically branded asset rather than a neutral, utility-driven token.
Despite a 24-hour 21% surge in market cap, USD1 stands at just $601 million, a fraction of incumbents like Tether’s USDT and Circle’s USDC, which command $167 billion and $64 billion, respectively, according to CoinMarketCap.
Analysts at Kaito told CNBC last month that the stablecoin’s lack of institutional backing and promotional utility has kept it from taking hold. “Most stablecoins that succeed do so with a mixture of utility, visibility, and incentives,” one Kaito researcher noted. “Until now, USD1 had none of those.”
The launch of the rewards initiative aims to flip that script. Per the press release users on HTX can now earn loyalty points by trading USD1 pairs, holding USD1 balances, or staking the token through the platform. Additional rewards will be offered through partner integrations and WLFI’s mobile app, with specific rules varying by exchange.
“We’re proud to support this loyalty program as a way to drive adoption through forward-thinking initiatives.” HTX advisor Justin Sun said.
The political elephant in the room
While World Liberty Financial maintains that USD1 is fully backed by U.S. Treasuries and other cash equivalents, its rollout has been mired in controversy. Donald Trump Jr. has framed USD1 as a tool to promote dollar strength, but critics see deep conflicts of interest. The Trump family holds advisory roles in the project, and according to CNBC, 75% of profits are funneled to family-linked entities.
Concerns intensified after the recent TRUMP token promotion, which offered top holders a private dinner with the former president. Senator Elizabeth Warren called the contest “an orgy of corruption,” accusing Trump of using crypto to enrich himself and his allies.
According to Inca Digital, over $5.2 billion in gains were concentrated in a small number of wallets, while more than half a million participants suffered collective losses of $3.9 billion.
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