Binance Expands Trading Options for Trump Family's USD1 Stablecoin

Binance Expands Trading Options for Trump Family's USD1 Stablecoin

Binance has increased access to the USD1 stablecoin, which is linked to the Trump family, by introducing new fee-free trading pairs. This development follows the token's growing presence on the platform.

Key Takeaways:

Binance has added new zero-fee trading pairs for USD1 and will completely transition BUSD collateral to USD1.
The USD1 token has experienced rapid growth, achieving a market capitalization of $2.7 billion, backed by U.S. Treasuries and significant investments from Abu Dhabi.
The uptick in USD1's popularity coincides with renewed political focus and Binance's regulatory advancements in Abu Dhabi.

On Thursday, Binance announced that users can now trade USD1 against Ether, Solana, and BNB, adding to its existing Bitcoin pair.

Binance Phases Out BUSD in Favor of USD1

This strategic move enhances Binance's use of USD1 and comes as the exchange plans to convert all remaining BUSD collateral into USD1 at a one-to-one ratio within the week.

This decision effectively phases out BUSD from Binance’s internal ecosystem, establishing USD1 as its primary asset for dollar-pegged collateral. Binance officials indicated that this conversion is part of a larger revision of its collateral framework, describing USD1 as “an integral part” of the exchange's future.

Zach Witkoff, CEO of World Liberty Financial, praised the expansion, calling it a significant milestone for the stablecoin that was launched just in March.

USD1, which is backed by U.S. Treasury bills and available on both the Ethereum and BNB Chain networks, has surged to become the seventh-largest stablecoin with a market capitalization of $2.7 billion. Its rapid rise was spurred by a $2 billion investment in May from Abu Dhabi-based MGX, which utilized USD1 on Binance.

Despite initial momentum, supply has seen a slight decrease from its peak of $3 billion in late October, with no new tokens minted in recent months, according to data from CoinGecko.

World Liberty Financial, co-founded by former President Donald Trump and his sons, lends USD1 a distinctive political dimension in the stablecoin sector. The token gained additional recognition after Trump granted a pardon to Binance founder Changpeng Zhao seven weeks ago. Zhao had previously received a four-month prison sentence in April 2024 for inadequate anti-money laundering measures at the exchange. Trump stated that the pardon was influenced by broad support for Zhao and emphasized that the actions did not equate to a crime.

Binance’s advancements come at a time when the exchange has recently obtained three new licenses in Abu Dhabi, solidifying its position in one of the most ambitious digital asset hubs in the Middle East. This regulatory framework provides a robust foundation for Binance as it aims to attract more institutional investors.

Binance Considers U.S. Market Re-Entry Following Trump's Pardon of Zhao

In light of the pardon, Binance is reportedly exploring methods to return to the U.S. market. Options under consideration include merging its U.S. affiliate with its global exchange or enabling its main platform to serve American users directly.

Zhao's pardon, following his 2023 guilty plea for anti-money laundering infractions, has drawn renewed scrutiny as Binance embarks on a $2 billion partnership with the Trump family's backed crypto initiative, World Liberty Financial.

This clemency effectively removes previous legal constraints that limited Zhao's business involvement, revitalizing the company's leadership as it seeks greater access to the U.S. market.

Zhao, with a net worth of $61.4 billion, remains a key player in the crypto space, overseeing an ecosystem that includes $8.7 billion in on-chain assets. The pardon also comes as Trump seeks to engage more with the digital asset industry, with reports indicating that his family has profited over $1 billion from various crypto ventures.