Binance is revamping part of its stablecoin infrastructure by integrating USD1 — the dollar-backed stablecoin tied to Trump-linked crypto project WLFI — more deeply across the exchange. What’s changing - New direct trading pairs: BNB/USD1, ETH/USD1 and SOL/USD1 will go live Thursday, letting traders use USD1 directly against three of the exchange’s largest assets, Binance said in a press release. - Zero-fee conversions: Binance will allow fee-free exchanges between USD1 and the two biggest market stablecoins, Circle’s USDC and Tether’s USDT. - B-Token reserve swap: Binance will convert all reserves supporting its BUSD-pegged token (the B-Token) into USD1. That conversion is expected to finish within seven days. Afterward, USD1 will be used as part of the collateral that underpins Binance’s internal systems, including margin trading and liquidity operations. About USD1 USD1 is redeemable 1:1 for U.S. dollars and is fully backed by U.S. Treasury bills, cash and equivalents. It currently has roughly a $2.7 billion market capitalization, making it the sixth-largest stablecoin by that metric, according to RWA.xyz. The token drew wider attention when a $2 billion investment in Binance from Abu Dhabi’s MGX was settled in USD1. Why this matters By shifting reserves into USD1 and adding native trading pairs, Binance is effectively routing more of its on-exchange liquidity through a single, Treasury-backed stablecoin. The zero-fee rails to USDC and USDT could also funnel liquidity between the dominant stablecoins more efficiently, potentially changing how traders and institutional flows move on the platform. Context The announcement comes after President Donald Trump granted Binance founder Changpeng “CZ” Zhao a pardon in October — a decision that drew scrutiny over the president’s crypto ties. Zhao had pleaded guilty in November 2023 to violating the Bank Secrecy Act and served a four-month prison sentence. Binance’s move is another notable step in stablecoin competition and exchange-level treasury management, with implications for liquidity, counterparty risk and how large platforms choose collateral going forward. Read more AI-generated news on: undefined/news

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