Gate Becomes Second-Largest USD1 Holder Among Centralized Exchanges After IKA Launchpad Surge

Gate cryptocurrency exchange and World Liberty Financial (WLFI) have reached a significant achievement in their partnership, with Gate now holding the second-largest amount of USD1 stablecoin among centralized exchanges. The milestone comes as on-chain data reveals Gate’s substantial USD1 reserves, positioning the exchange just behind Binance in total holdings.

USD1 Holdings Surge on Gate Platform

The dramatic increase in Gate’s USD1 reserves stems from the recent launch of Ika (IKA) through Gate’s Launchpad platform on July 26. This campaign allowed users to subscribe using both USD1 and Gate Token (GT), drawing considerable participation from the crypto community and resulting in significant stablecoin deposits.

📢 Gate featured in @CoinDesk's Latest Exchange Review Highlights!

🔹 Derivatives volume up 69.9% MoM to $264B, ranks Top 1 among all CEXs
🔹 Market share hits 4.13%, ranks Top 5 globally, setting a new all-time high
🔹 Total reserves reach $10.453B with BTC/ETH/USDT ratios all… pic.twitter.com/Cg2WNxAKce

— Gate (@Gate_io) June 23, 2025

Current blockchain data shows that USD1 liquidity primarily exists on BNB Smart Chain (BSC), where Gate maintains roughly $170 million in reserves. The exchange also holds an additional $20 million worth of USD1 on Ethereum, making it the largest centralized exchange holder on that particular blockchain. These figures align with the substantial 196 million USD1 tokens that users have committed to the IKA Launchpad event.

Record-Breaking Launchpad Performance

The IKA token launch has generated exceptional interest, with total user contributions exceeding 200 million USD1 alongside 5.33 million GT tokens valued at approximately $97.5 million. This represents one of the most successful Launchpad events in Gate’s recent operational history, demonstrating strong market appetite for new token offerings.

USD1 operates as a dollar-backed stablecoin developed by World Liberty Financial, maintaining a 1:1 peg through reserves consisting of short-term U.S. government treasuries, dollar deposits, and various cash equivalents. The stablecoin features real-time auditing capabilities and operates across multiple blockchain networks including BSC and Ethereum, with plans for further expansion.

This strategic partnership between Gate and WLFI represents their mutual dedication to developing a transparent and regulatory-compliant PayFi ecosystem. Their collaboration aims to create bridges between traditional financial infrastructure and emerging decentralized technologies, potentially expanding access to digital financial services.

Market Implications for Stablecoin Adoption

This development signals growing institutional confidence in alternative stablecoins beyond established players, potentially encouraging more exchanges to diversify their stablecoin offerings. The substantial USD1 accumulation on Gate could attract additional liquidity providers and traders seeking new stablecoin trading pairs.