Cryptocurrency exchange Binance is expanding the role of USD1 (USD1), the stablecoin of the Trump-linked crypto project 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 WLFI’s dollar-backed stablecoin, according to a press release. It also offers fee-free trading between $1 and the two largest stablecoins, Circle’s USDC and Tether’s USDT.
At the same time, Binance will convert all reserves backing its BUSD-pegged token (B-Token) into $1. That process is expected to be completed within seven days. After that, $1 will be part of the collateral used across all Binance systems, including margin trading and other internal liquidity operations.
USD1 is fully backed by US Treasury bills, cash and equivalents, and is redeemable 1:1 for dollars. It currently has a market capitalization of $2.7 billion, ranking sixth among stablecoins, according to data from RWA.xyz. The token gained attention after a $2 billion investment in Binance by Abu Dhabi’s MGX settled at $1.
The move comes after Donald Trump granted Binance founder Changpeng “CZ” Zhao a pardon in October, a decision that sparked scrutiny over the president’s crypto businesses. Zhao served a four-month prison sentence after pleading guilty in November 2023 to violating the Bank Secrecy Law.
