- Binance is deprecating Binance-peg BUSD as collateral, auto-converting all positions to World Liberty Financial’s USD1, effectively making the Trump-linked token its new liquidity backbone.
- The exchange opened spot trading for BNB, ETH, and SOL against USD1, incentivizing liquidity with zero fees for VIP traders.
- The move follows a $2 billion investment into Binance by Abu Dhabi’s MGX, settled entirely in USD1, which has pushed the token’s market cap to $2.8 billion.
Binance has executed a decisive pivot in its stablecoin strategy, integrating World Liberty Financial’s USD1 directly into its core trading and collateral frameworks. The move effectively retires the legacy of BUSD, once the exchange’s flagship stablecoin, and replaces it with the dollar-backed token co-founded by President Donald Trump and his sons.
Beginning at 08:00 UTC, Binance users gained access to BNB/USD1, ETH/USD1, and SOL/USD1 spot trading pairs. The additions place USD1 alongside some of the exchange’s most actively traded assets, increasing its presence across high-liquidity markets. Binance also confirmed that trading bots and spot algorithmic orders are enabled for each of the new pairs at launch.
Related: KuCoin Rolls Out USD1 Points Program to Drive Stablecoin Engagement
The ‘Regime Change’: BUSD Out, USD1 In
In parallel with the trading expansion, Binance stated it will convert all collateral assets backing Binance-Peg BUSD, also referred to as the B-Token, into USD1 at a 1:1 ratio. The conversion process is expected to be completed within one week.
Once finalized, USD1 will be incorporated into Binance’s updated collateral structure, replacing the role previously held by Binance-Peg BUSD. According to World Liberty Financial, the change embeds USD1 more directly into Binance’s internal settlement and risk framework.
In addition, Binance is also introducing fee changes tied to USD1 markets. Users classified under VIP Levels 2 through 9 will incur zero maker and taker fees when trading BNB/USD1, BTC/USD1, ETH/USD1, and SOL/USD1 pairs. Additionally, all users will face zero trading fees on USD1/USDT and USD1/USDC pairs.
Abu Dhabi Capital Meets Trump Crypto
USD1 has a circulating supply of nearly $2.8 billion, according to data from DeFiLlama. A large portion of that supply stems from Abu Dhabi-based investment firm MGX, which earlier this year used USD1 to complete a $2 billion investment into Binance.
Launched in March, USD1 is described as fully redeemable and backed on a one-to-one basis by short-term U.S. Treasury bills, U.S. dollar deposits, and other cash equivalents.
Political Context
World Liberty Financial debuted its decentralized finance protocol in October 2024. President Donald Trump and his three sons are listed as co-founders of the project.
In October, Trump issued a pardon to former Binance CEO Changpeng Zhao. That same month, Binance.US stated that political considerations did not influence its decision to list USD1.
World Liberty Financial said the Binance integration follows a series of deployments across multiple blockchains and exchanges as USD1 continues to expand its distribution footprint.
Related: Binance Wins Three ADGM Licenses as Abu Dhabi Sets Crypto Rule Benchmark
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