Crypto exchange Binance is expanding the role of USD1 (USD1), the stablecoin of Trump-linked crypto project
Starting Thursday, the exchange will offer new trading pairs — BNB/USD1, ETH/USD1 and SOL/USD1 — giving users broader access to trade with WLFI’s dollar-backed stablecoin, according to a press release. It also offers zero-fee exchange between USD1 and the two largest stablecoins, Circle’s USDC and Tether’s USDT.
At the same time, Binance will convert all reserves supporting its BUSD-pegged token (B-Token) into USD1. That process is expected to be completed within seven days. After that, USD1 will be part of the collateral backing used across Binance’s systems, including in margin trading and other internal liquidity operations.
USD1 is fully backed by U.S. Treasury bills, cash and equivalents, and is redeemable 1:1 for dollars. It currently has a $2.7 billion market capitalization, ranking sixth among stablecoins, according to RWA.xyz data. The token gained attention after a $2 billion investment in Binance from Abu Dhabi’s MGX was settled in USD1.
The move follows Donald Trump granting Binance founder Changpeng “CZ” Zhao a pardon in October, a decision that sparked scrutiny over the president’s crypto business dealings. Zhao served a four-month prison sentence after pleading guilty in November 2023 to violating the Bank Secrecy Act.