The world's largest crypto exchange strengthens its ties with the Trump family. Binance has just massively integrated USD1, World Liberty Financial's stablecoin, into its infrastructure. A rapprochement which comes just a few weeks after the presidential pardon granted to its founder.
In brief
- Binance launches fee-free trading pairs for USD1 with BTC, ETH, SOL and BNB.
- The platform will convert all collateral from its BUSD to USD1 within a week.
- USD1, World Liberty Financial's stablecoin linked to Trump, reaches $2.7 billion in capitalization.
A massive integration that redesigns the Binance ecosystem
Binance reached a decisive milestone on Thursday in its merger with World Liberty Financial. The platform now offers fee-free exchanges between USD1 and major cryptos: Bitcoin, Ether, Solana and BNB. However, the most significant announcement concerns the overhaul of its collateral infrastructure.
Within seven days, Binance will convert all reserves supporting its “B-Token” (backed by BUSD) to USD1, at a rate of 1:1. This transition makes USD1 a central pillar of the Binance ecosystem, particularly for margin trading and internal liquidity operations.
“ This transition means that the US dollar (USD1) will become part of Binance's updated collateral structure “, confided the exchange.
USD1, entirely backed by US Treasury bills and launched in March on Ethereum and BNB Chain, has already risen to sixth place among stablecoins in the world. Its capitalization of 2.7 billion dollars results in particular from a massive investment of 2 billion by MGX of Abu Dhabi in Binance, settled entirely in USD1.
Zach Witkoff, CEO of World Liberty Financial, hails “an important moment to make dollar stablecoins accessible to everyone.”
A political context that raises questions
The timing of this announcement escapes no one. Indeed, seven weeks earlier, Donald Trump granted a full presidential pardon to Changpeng Zhao, founder of Binance. “CZ” had served four months in prison for violations of anti-money laundering laws, after pleading guilty in November 2023.
Trump, co-founder with his sons of World Liberty Financial, justified the pardon by saying that “many people” had told him that Zhao's actions “do not even constitute a crime.” A statement that contrasts with the hard line adopted by the Biden administration towards the crypto sector.
This rapprochement between Binance and the Trumpian stablecoin raises legitimate questions about the links between politics and decentralized finance. Could the platform, banned from the American market since 2023, consider a return? No official announcement has been made, but signals are piling up.
However, USD1 is showing signs of running out of steam. No new issues have taken place for months, and its capitalization has fallen since its peak of $3 billion reached at the end of October. Will the Binance-Trump alliance be enough to revive the dynamic?
Binance and World Liberty Financial seal an alliance that goes beyond simple technical cooperation. This massive integration of USD1 is redrawing the contours of the stablecoin market and further anchoring the Trump family in the crypto ecosystem. It remains to be seen whether this strategy will serve institutional adoption or fuel controversies over the links between political power and crypto.
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