Binance to swap BUSD collateral into Trump-backed USD1

One of the world’s largest crypto exchanges announced plans to convert all assets used as collateral for its BUSD stablecoin into USD1, the stablecoin issued by World Liberty Financial, at a 1:1 rate within a week. The exchange is also introducing zero-fee USD1 trading pairs for major tokens such as Ether.

The change adds USD1 to Binance’s collateral pool and brings new fee-free USD1 markets on the platform. In outlining the update, the company described USD1 as a component of its revised collateral structure.

Zach Witkoff, co-founder and CEO of World Liberty Financial, welcomed the expansion, calling it “an important moment in WLFI’s effort to make digital US dollar stablecoins available to people everywhere.”

USD1 launched in March 2025 on Ethereum and BNB Chain and is backed by U.S. Treasury bills, according to its issuer. It is currently the seventh-largest stablecoin with a market value of about $2.7 billion. In May, Abu Dhabi investment firm MGX outlined plans to use USD1 for a $2 billion investment on Binance.

Recent market data indicate limited new issuance in recent months, with circulating supply easing from a late-October peak near $3 billion.

World Liberty Financial is a crypto venture closely tied to the Trump family, majority-owned by a Trump business entity and launched by his sons Eric and Donald Trump Jr. alongside other co-founders. About seven weeks ago, Trump issued a pardon to Binance founder Changpeng Zhao, who received a four-month sentence in April 2024 after pleading guilty to failing to implement an adequate anti-money laundering program at the exchange. 

As we covered previously, Binance secured three ADGM licenses in Abu Dhabi covering exchange operations, clearing infrastructure, and broker-dealer services, enabling a trading venue, custody and settlement, and off-exchange services from the emirate.