Binance Strengthens Ties With Trump Through the USD1 Stablecoin

The world’s largest crypto exchange platform strengthens its ties with the Trump family. Binance has massively integrated USD1, the stablecoin from World Liberty Financial, into its infrastructure. A rapprochement that comes just weeks after the presidential pardon granted to its founder.

A massive integration that reshapes the Binance ecosystem

On Thursday, Binance took a decisive step in its rapprochement with World Liberty Financial. The platform now offers zero-fee trades 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 1:1 rate. This transition makes USD1 a central pillar of the Binance ecosystem, especially for margin trading and internal liquidity operations. 

This transition means that the US dollar (USD1) will become an integral part of Binance’s updated collateral structure, the exchange said.

The USD1, fully backed by US Treasury bonds and launched in March on Ethereum and BNB Chain, already ranks sixth globally among stablecoins. Its capitalization of 2.7 billion dollars is notably the result of a massive 2 billion investment by MGX from Abu Dhabi into Binance, fully settled in USD1. 

Zach Witkoff, CEO of World Liberty Financial, calls it “an important moment to make dollar stablecoins accessible to everyone”.

A political context that raises questions

No one misses the timing of this announcement. 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 anti-money laundering law violations after pleading guilty in November 2023.

Trump, co-founder of World Liberty Financial with his sons, justified this pardon by stating that “many people” 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. The platform, banned from the US market since 2023, could it consider a return? No official announcement has been made, but signals are accumulating.

However, USD1 shows signs of slowing down. No new issuance has occurred for months, and its capitalization has declined since its peak of 3 billion dollars reached at the end of October. Will the Binance-Trump alliance be enough to revive momentum?

Binance and World Liberty Financial are sealing an alliance that goes beyond simple technical cooperation. This massive integration of USD1 redraws the outlines of the stablecoin market and anchors the Trump family further into the crypto ecosystem. It remains to be seen whether this strategy will serve institutional adoption or fuel controversies about the links between political power and crypto.