Binance Expands USD1 Stablecoin Integration, Strengthening Ties with Trump's Crypto Platform

Binance, the largest cryptocurrency exchange globally, is enhancing its support for USD1, a stablecoin associated with World Liberty Financial and the crypto initiatives of former President Donald Trump. The exchange has introduced new trading pairs such as ETH/USD1, SOL/USD1, and BNB/USD1, and is offering fee-free swaps between USD1 and other leading stablecoins.

Key Takeaways

Binance is expanding its support for USD1, a stablecoin associated with World Liberty Financial and Donald Trump’s ventures.
New trading pairs have been introduced, including ETH/USD1, SOL/USD1, and BNB/USD1, with fee-free swaps available.
Binance will convert its BUSD collateral to USD1 at a 1:1 ratio within a week.
Market reactions show increased trading activity, particularly in BNB.
USD1 is backed by US Treasury bills and has seen significant growth in market capitalization.
The integration occurs amid scrutiny regarding Binance's political connections and transaction transparency.

Binance

Changes in Collateral: Shifting to USD1

Binance plans to convert its collateral for the Binance-Peg BUSD (B-Token) into USD1 at a one-to-one ratio. This transition is expected to conclude within a week. The integration of USD1 into the exchange's internal collateral and liquidity systems signifies a strategic move beyond just providing a tradable token.

Market Response and Liquidity Impact

The announcement spurred an immediate response from traders. Price fluctuations in BNB and other cryptocurrencies indicated heightened buying activity post-announcement. Market analysis revealed a short-term increase in BNB prices, driven by the broader liquidity and trading opportunities created by the introduction of new USD1 pairs. Analysts suggest that the combined benefits of increased market utilization and Binance’s fee-free swaps have contributed to this uptick.

Binance to Introduce BNB/USD1 and ETH/USD1 Trading Pairs; B-Token Collateral Transition to USD1
An official statement from @binance states that new spot trading pairs BNB/USD1, ETH/USD1, and SOL/USD1 will launch at 16:00 (UTC+8) on December 11, 2025.
At the same time, Binance will… pic.twitter.com/mIPrkiR3Lj
— ME (@MetaEraHK) December 10, 2025

According to filings and market analyses, USD1 is backed by US Treasury bills and cash equivalents, and it can be redeemed on a one-to-one basis with the US dollar. The stablecoin has experienced rapid growth, recently ranking amongst the larger stablecoins in terms of market capitalization, with estimates around $2.7 billion. Additionally, USD1 has been linked to a significant investment from Abu Dhabi, which utilized the token in a $2 billion transaction.

Total crypto market cap currently at $3.11 trillion. Chart: TradingView

These developments follow a politically sensitive situation wherein Trump granted a pardon to Binance's former CEO earlier this year. Critics have raised concerns over the potential connections between Binance and Trump's crypto-related ventures. This situation has prompted scrutiny from lawmakers and commentators, who are calling for greater transparency in the deal-making process and the potential for conflicts of interest.

Company representatives have issued brief statements denying any political favors were sought or exchanged for these business agreements. Binance has stated that its announcements primarily focus on product launches, trading schedules, and user incentives, such as no trading fees for select users. Meanwhile, World Liberty Financial has highlighted the reserve backing that underpins USD1.

Featured image from Unsplash, chart from TradingView