StakeStone’s USD1 Vault: A Game-Changer for USDT and DeFi Yield Markets

StakeStone has launched the USD1 Vault, a groundbreaking decentralized finance (DeFi) product developed in partnership with CIAN Protocol and backed by World Liberty Finance (WLFI). This innovative vault offers fixed on-chain yield through the USD1 stablecoin, which is pegged 1:1 to U.S. Treasuries and custodied by BitGo. With over $2.1 billion in issuances across major exchanges like Binance, Bitget, and HTX, USD1 is emerging as a highly reliable stablecoin in the DeFi ecosystem. The USD1 Vault is set to revolutionize yield access by providing a secure and transparent way for investors to earn stable returns backed by real-world assets. This development marks a significant milestone in the convergence of traditional finance and DeFi, offering a robust alternative to USDT and other stablecoins in the market.

StakeStone Launches USD1 Vault to Revolutionize DeFi Yield Access

StakeStone has unveiled the USD1 Vault, a decentralized finance product developed in collaboration with CIAN Protocol and backed by World Liberty Finance (WLFI). The vault provides fixed on-chain yield through the USD1 stablecoin, which is 1:1 backed by U.S. Treasuries custodied by BitGo. With over $2.1 billion in issuances across major exchanges like Binance, Bitget, and HTX, USD1 is positioned as a reliable stablecoin in the crypto ecosystem.

The USD1 Vault addresses growing demand for cross-chain liquidity distribution, integrating with more than 20 blockchains. StakeStone's single-interface solution allows users to manage liquidity across multiple chains seamlessly. CIAN Protocol's automation optimizes yield strategies across various DeFi protocols, while WLFI ensures USD1's stability through asset-backed compliance.

Initially supporting deposits in USD1, USDT, and USDC on the BNB Chain, the vault combines yield generation with user-friendly accessibility. This launch marks a significant step in bridging traditional finance reliability with decentralized innovation.

Tether Mints $2 Billion in New Tokens Amid Crypto Market Rally

Tether's issuance of $2 billion in new USDT tokens marks a significant liquidity injection into cryptocurrency markets, with half the amount immediately transferred to Binance. The move coincides with Bitcoin's rally toward $119,000, just shy of its all-time high, signaling renewed institutional interest in digital assets.

Stablecoin circulation has surged to $160 billion, up from $118.4 billion in August 2024, reflecting their growing dominance as on-ramps for institutional capital. Market analysts interpret large-scale minting events as precursors to heightened volatility, with traders using USDT as a temporary haven before deploying into riskier assets.

Arkham Intelligence data reveals the strategic timing of this liquidity infusion, suggesting sophisticated players are positioning for potential market movements. Binance's receipt of $1 billion underscores its continued role as the primary liquidity hub for large-scale crypto transactions.

Euro-Backed Stablecoins Fail to Gain Traction Against USD Dominance in EU Crypto Markets

Despite regulatory efforts to promote euro-denominated stablecoins, the European crypto market remains overwhelmingly dominated by U.S. dollar-pegged alternatives. Data reveals 99.8% of global stablecoin supply remains USD-based, with Tether (USDT) and Circle (USDC) maintaining ironclad control over EU transactions.

The Markets in Crypto-Assets (MiCA) framework, implemented to create favorable conditions for EUR stablecoins, has yet to produce meaningful results. European stablecoin transaction volume grew just 16% to 34% from 2024-2025, while North American activity surged 42% during the same period.

"The infrastructure exists, but behavioral inertia favors the dollar," observed Alexander Hoeptner of AllUnity, Germany's first EUR stablecoin issuer. Market participants continue opting for dollar liquidity despite the EU's strategic push for monetary sovereignty in digital finance.