Usual USD (USD0) Price Prediction

Deep Dive

1. Regulatory Pressures (Bearish/Mixed Impact)

Overview: Anchorage Digital delisted USD0 on 29 June 2025, citing “elevated concentration risks” in its issuer structure, alongside USDC and AUSD. The move followed the U.S. Senate’s passage of the GENIUS Act, which tightens stablecoin oversight. USD0’s Paris-based operations face additional uncertainty under the EU’s MiCA framework, where Tether has already refused compliance.

What this means: While USD0’s Treasury-backed reserves align with regulatory demands for transparency, the delisting could reduce institutional accessibility in the short term. However, CoinGecko’s April 2025 RWA report noted USD0’s rise to 6th-largest fiat-backed stablecoin ($600M market cap), suggesting resilience if compliance improves (CoinGecko).

2. DeFi Adoption & Yield Incentives (Bullish Impact)

Overview: Usual’s TAC Vault and Lock & Boost staking (UIP-9) now offer 8–13% APY for USD0 deposits, with 40–44% APY for 12-month locks. Over $156k weekly rewards aim to retain long-term holders. USD0++ (a yield-enhanced variant) also launched on TAC via LayerZero, expanding cross-chain utility.

What this means: High yields attract capital inflows, but reliance on incentives risks volatility if rewards diminish. The protocol’s $638M market cap and 0.16% daily turnover signal thin liquidity, making demand for vaults critical to sustain peg stability.

3. RWA Market Expansion (Bullish Impact)

Overview: Tokenized Treasuries surged 545% to $5.6B by April 2025, per CoinGecko. USD0’s collateralization with U.S. T-bills positions it as a DeFi-native alternative to BlackRock’s BUIDL fund, which dominates 45% of the tokenized Treasury market.

What this means: As institutions seek yield outside traditional finance, USD0’s composable design could capture demand. However, USDT and USDC still control 93.5% of the $225B fiat-backed stablecoin market, requiring USD0 to differentiate through transparency or regulatory agility.

Conclusion

USD0’s price stability hinges on balancing regulatory compliance with aggressive DeFi incentives. While Anchorage’s delisting exposes short-term vulnerabilities, its RWA alignment and high-yield vaults offer growth avenues. Will MiCA compliance or cross-chain adoption offset institutional outflows? Monitor weekly staking rewards and regulatory updates.