Binance is significantly integrating the USD1 stablecoin, which is co-founded by the Trump family, by making it its primary collateral asset and offering new zero-fee trading pairs.
- Expanded Trading: Binance has added fee-free trading for USD1 against Ether, Solana, and BNB, building on the existing Bitcoin pair.
- BUSD Replacement: The exchange will convert all internal BUSD collateral to USD1 at a 1:1 rate within a week, effectively retiring BUSD from its collateral structure and making USD1 its key dollar-pegged asset.
- Rapid Growth: Launched in March, USD1 has quickly reached a $2.7 billion market capitalization, becoming the seventh-largest stablecoin. Its growth was fueled by a $2 billion investment from Abu Dhabi firm MGX.
- Political Context: The stablecoin’s rise is notable due to the involvement of President Donald Trump and his sonsin its issuer, World Liberty Financial.
- This has drawn further attention following Trump’s pardon of Binance founder Changpeng Zhao (CZ), who had been sentenced for anti-money laundering failures. Trump stated he pardoned Zhao after hearing broad support, claiming the offense “is not even a crime.”
- Regulatory Gains: The move coincides with Binance securing three new regulatory licenses in Abu Dhabi, strengthening its base in the Middle East.
- US Market Exploration: Following CZ’s pardon—which removes prior legal restrictions on his business involvement—Binance is reportedly exploring ways to re-enter the US market, potentially by merging its US and global platforms.
This integration positions USD1, backed by US Treasury bills, as an “integral part” of the Binance ecosystem amidst renewed political scrutiny and a significant regulatory push by the exchange.
Explore the guides: MENA Regulation Tracker →Crypto regulation guide →
📧 The Gulf reads Cryptonite first
Get MENA regulation moves, RWA deals and AI-money trends in one weekly brief — plus instant alerts when the MENA Regulation Tracker changes. Free, no spam.
Was this briefing useful?Thanks for the feedback!
