Binance Upgrades World Liberty Financial Stablecoin

Binance, the world's largest cryptocurrency exchange, announced the upgrade of the stablecoin issued by World Liberty Financial (USD1). Users will now be able to trade USD1 against tokens such as BNB, ETH, and SOL. This decision was announced on Thursday, when the exchange announced the introduction of USD1 on several of its most active spot markets.

Asset Conversion

As part of this transition, Binance also announced plans to convert all collateral assets backing Binance-Peg BUSD (B-Token) to USD1 at a 1:1 ratio within a week. This means USD1 will become an integral part of Binance's upgraded collateral structure, further integrating the stablecoin into the exchange's ecosystem.

USD1 Circulating Supply

According to DeFiLlama, there are nearly $2.8 billion worth of USD1 in circulation. Much of the supply comes from Abu Dhabi-based investment firm MGX, which used USD1 to invest $2 billion in Binance earlier this year.

CEO Statement

World Liberty CEO and co-founder Zach Witkoff noted that expanding USD1 support on Binance marks a significant moment in the company's efforts to make U.S. dollar-denominated digital stablecoins accessible to people around the world. "By integrating USD1 into the liquidity, trading, and collateral systems of the world's largest exchange, Binance provides hundreds of millions of users with improved access to USD1," he added.

World Liberty Financial Co-Founders

Interestingly, President Donald Trump and his three sons are also listed as co-founders of World Liberty Financial, a DeFi protocol launched in October 2024. Last October, Trump pardoned former Binance CEO Changpeng Zhao. That same month, Binance.US denied allegations that political motives played a role in the listing of USD1.

Stablecoin Backing

Launched in March, the World Liberty $1 stablecoin is reportedly fully backed by short-term US government bonds, adding an additional layer of credibility to the asset. This decision could further boost USD1's popularity and integration into the financial ecosystem.