Cryptocurrency exchange Binance is expanding the role of USD1 (USD1), the stablecoin of Trump-linked crypto projects. WLFI$0.1462which uses tokens to overhaul parts of its stablecoin infrastructure.
Starting Thursday, the exchange will offer new trading pairs (BNB/USD1, ETH/USD1, SOL/USD1), giving users broader access to trading with WLFI’s dollar-backed stablecoins, according to a press release. We also offer zero-fee exchange between USD1 and two of the largest stablecoins, Circle’s USDC and Tether’s USDT.
At the same time, Binance will convert all reserves supporting the BUSD pegged token (B-Token) to USD1. This process is expected to be completed within 7 days. USD1 will then become part of the collateral used throughout Binance’s system, including margin trading and other internal liquidity operations.
USD1 is fully backed by U.S. Treasury bills, cash and equivalents, and is exchangeable for the dollar on a one-to-one basis. According to data from RWA.xyz, it currently has a market capitalization of $2.7 billion, ranking it 6th among stablecoins. The token gained attention after a $2 billion investment in Binance from Abu Dhabi’s MGX was settled for $1.
The move follows Donald Trump’s pardon of Binance founder Changpeng “CZ” Chao in October, a decision that sparked increased scrutiny of the president’s crypto business dealings. Mr. Zhao pleaded guilty to violating the Bank Secrecy Act in November 2023 and was sentenced to four months in prison, which he served.