Binance Lists Trump-Linked USD1 With Zero-Fee Pairs, Swaps BUSD Collateral 1:1
Binance has expanded support for USD1, the stablecoin issued by World Liberty Financial (co‑founded by Donald Trump and his sons), by adding zero-fee trading pairs against major tokens including ETH, SOL, BNB and its earlier BTC/USD1 pair. The exchange also said it will convert all assets collateralising its native BUSD stablecoin into USD1 at a 1:1 ratio within a week, integrating USD1 into Binance’s collateral structure. USD1 launched in March on Ethereum and BNB Chain and is backed by US Treasury bills; it is now the seventh-largest stablecoin with roughly $2.7 billion market cap after peaking near $3 billion. Growth was supported by a $2 billion USD1 investment into Binance from Abu Dhabi-based MGX in May. The move increases USD1 liquidity and on-exchange utility, which may affect stablecoin flows, collateral composition, margining and short-term funding dynamics on Binance markets. Political context — World Liberty Financial’s founders and the recent pardon of Binance founder Changpeng Zhao — is noted but the market impact centers on increased USD1 availability and its new role as BUSD collateral replacement.
Bullish
Integrating USD1 into Binance’s trading and collateral stack is likely bullish for USD1 specifically. Zero-fee USD1 pairs increase on‑exchange liquidity and trading volume, while a 1:1 conversion of BUSD collateral to USD1 creates immediate demand and on‑platform utility for USD1. Short-term effects may include increased USD1 inflows, tighter USD1 spreads versus other dollar stablecoins, and temporary rebalancing of stablecoin supplies on Binance. Longer term, sustained demand depends on US T‑bill backing transparency, regulatory perceptions, and usage by institutional partners (e.g., MGX). Risks that could curb bullishness include loss of confidence in USD1’s backing, regulatory pushback due to the issuer’s political ties, or technical/operational issues during the BUSD-to-USD1 collateral transition. Overall, the direct price impact on USD1 should be positive due to higher demand and utility, though market sensitivity to news and regulatory scrutiny could create volatility.