Binance, the world’s largest cryptocurrency exchange, has expanded its support for USD1, a stablecoin linked to World Liberty Financial and former U.S. President Donald Trump’s crypto ventures. The exchange has introduced new trading pairs—ETH/USD1, SOL/USD1, and BNB/USD1—and enabled zero-fee swaps between USD1 and other major stablecoins.
Binance will also convert all the collateral backing its Binance-Peg BUSD (a B-Token) into USD1 at a 1:1 ratio, a process expected to be completed within a week. This integration means USD1 will become part of Binance’s internal collateral and liquidity systems, moving beyond just being a tradable asset.
The market reacted promptly to the news, with increased buying interest observed in BNB and other tokens. Data indicated a short-term rise in BNB’s price, likely driven by the expanded liquidity and trading options from the new USD1 pairs, as well as the platform’s fee-free swaps.
Public records show that USD1 is backed by U.S. Treasury bills, cash, and equivalent assets, and is redeemable one-to-one with the U.S. dollar. The stablecoin has seen rapid growth, with a reported market capitalization of around $2.7 billion, placing it among the larger stablecoins. It was also reportedly used in a major $2 billion investment deal in Abu Dhabi.
This business development follows a politically sensitive event: Trump’s pardon earlier this year of Binance’s former CEO. This action has led to scrutiny from lawmakers and commentators, who are questioning potential connections between Binance and the Trump family’s crypto interests and calling for greater transparency.
Company representatives have denied any exchange of political favors to secure business deals. Binance’s communications have focused on product updates, trading schedules, and user incentives like zero fees, while World Liberty Financial has highlighted the stablecoin’s reserve backing.
Frequently Asked Questions
Of course Here is a list of FAQs about Binances push for a USDbacked stablecoin and its connection to the Trumpaffiliated crypto platform designed to be clear and helpful for all levels of understanding
Beginner Definition Questions
1 What exactly is a USDbacked stablecoin
A USDbacked stablecoin is a type of cryptocurrency designed to have a stable value pegged 11 to the US Dollar For every digital coin in circulation the issuing company should hold one US Dollar in reserve Examples include USDC and Tether
2 What is the Trump crypto platform being mentioned
This refers to Trump Digital Trading Cards a platform launched by former President Donald Trumps media company to sell NFTs The platform has recently expanded to allow users to trade other cryptocurrencies
3 So what is Binance trying to do here
Reports indicate that Binance the worlds largest crypto exchange is actively encouraging the Trumpaffiliated platform to adopt and list a specific USD stablecoin as its primary trading pair This would strengthen their business relationship
Intermediate Motivations Questions
4 Why would Binance want to do this
For Binance its a strategic business move By having its stablecoin become the default currency on a highprofile platform it increases the coins adoption trading volume and utility It also deepens Binances influence in the crypto ecosystem
5 Why would the Trump platform agree to this
Partnering with an established giant like Binance provides liquidity technical infrastructure and credibility It would make their platform more functional and attractive to traders by offering a major liquid stablecoin for easy trading in and out of other cryptocurrencies
6 What are the benefits for regular crypto users
If this happens users on the Trump platform would have access to a major liquid stablecoin for trading It could lower transaction costs simplify the process of buying other crypto assets and potentially attract more users to the platform due to increased legitimacy
7 Isnt this just about politics
While the connection to Trump brings political attention at its core this is a