The collateral assets of Binance-Peg BUSD (B-Token) will also be converted to USD1 at a 1:1 ratio.
This means that the collateral assets of the stablecoin BUSD have all been converted to USD1, and by collateralizing one USD1, one BUSD will be minted on-chain.
The collateral assets of established stablecoins like USDT are highly liquid assets, such as BTC, short-term U.S. Treasury bonds, and gold, which can be sold immediately for cash to maintain the 1:1 price peg of the stablecoin to the U.S. dollar.
Using one stablecoin as collateral for another stablecoin, does USD1 have such high liquidity? What if USD1 itself detaches slightly? BUSD would be in trouble too.
The issuer of BUSD is Binance and Paxos, and in 2023, due to U.S. regulatory requirements, issuance was halted, causing BUSD to fall directly from the third position among stablecoins. Later, Binance began supporting FDUSD issued by the Hong Kong company First Digital.
Now, the Trump family's stablecoin USD1 has received full support from Binance, and the Trump family's $WLFI has also seen a significant increase in recent days.
