Crypto exchange Binance expands role of USD1 (USD1), Trump-linked crypto project’s stablecoin overhauling part of its stablecoin infrastructure with the token.
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 fee-free swapping between 1 USD 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 1 USD. This process should be completed within seven days. After that, USD1 will become part of the collateral used in Binance’s systems, including in margin trading and other internal liquidity operations.
USD1 is fully backed by US Treasuries, cash and equivalents, and is redeemable 1:1 against dollars. It currently has a market capitalization of $2.7 billion, ranking as the sixth largest stablecoin, according to data from RWA.xyz. The token gained attention after a $2 billion investment in Binance by Abu Dhabi’s MGX was settled in $1.
The move follows Donald Trump’s pardon of Binance founder Changpeng “CZ” Zhao in October, a move that sparked scrutiny of 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.
