Binance Expands Use of Trump-Linked WLFI's USD1 Stablecoin as Trading Collateral
Binance is expanding the use of World Liberty Financial's USD1 stablecoin on its platform by introducing new USD1 trading pairs including BNB/USD1, ETH/USD1, and SOL/USD1.
The stablecoin "B-Token" BUSD reserves will be converted to USD1 within seven days. Following this, USD1 will be used as collateral across Binance systems such as margin trading and internal liquidity operations.
USD1 is fully backed by U.S. Treasury bills, cash, and equivalents, and is redeemable 1:1 for U.S. dollars. It has a market capitalization of about $2.7 billion and ranks sixth among stablecoins according to RWA.xyz.
Binance will offer zero-fee exchanges between USD1 and the largest stablecoins USDC and USDT.
World Liberty Financial (WLFI), the issuer of USD1, has close ties to the Trump family. This move comes after a $2 billion investment in Binance from Abu Dhabi’s MGX that was settled using USD1.
Additionally, it is noted that Donald Trump granted Binance founder Changpeng Zhao (CZ) a pardon in October. Zhao previously served a four-month prison sentence after pleading guilty in 2023 to violating the Bank Secrecy Act.
The rollout of these new pairs and collateral changes started on Thursday.
