The cryptocurrency exchange Binance is enhancing the role of USD1 (USD1), the stablecoin associated with the Trump-linked crypto project , as it revamps part of its stablecoin framework.
Beginning Thursday, the exchange will launch new trading pairs — BNB/USD1, ETH/USD1, and SOL/USD1 — allowing users increased access to trade with WLFI’s dollar-backed stablecoin, as stated in a press release. Binance will also provide zero-fee conversions between USD1 and the two leading stablecoins, Circle’s USDC and Tether’s USDT.
Simultaneously, Binance plans to transition all reserves backing its BUSD-pegged token (B-Token) into USD1, a process expected to wrap up within seven days. After completion, USD1 will serve as collateral across Binance’s systems, including in margin trading and internal liquidity operations.
USD1 is entirely backed by U.S. Treasury bills, cash and equivalents, and can be redeemed 1:1 for dollars. It has a market capitalization of $2.7 billion, placing it sixth among stablecoins, according to RWA.xyz data. The token gained traction following a $2 billion investment in Binance from MGX in Abu Dhabi, settled in USD1.
This transition comes after Donald Trump pardoned Binance founder Changpeng “CZ” Zhao in October, a move that drew scrutiny regarding the president’s connections to crypto business dealings. Zhao had served a four-month prison sentence after admitting guilt in November 2023 to breaching the Bank Secrecy Act.
