Binance Expands Use of USD1 Stablecoin as It Revamps Its Infrastructure

Binance is deepening its integration of USD1, the stablecoin tied to the Trump-linked WLFI crypto project, as part of a broader overhaul of its stablecoin infrastructure. The exchange announced that it will introduce new trading pairs — BNB/USD1, ETH/USD1 and SOL/USD1 — beginning Thursday, giving users more flexibility and expanding real-world utility for USD1 across major digital assets. Binance will also offer zero-fee conversions between USD1 and leading stablecoins USDC and USDT, aiming to boost liquidity and streamline stablecoin movement for traders.

As part of the upgrade, Binance revealed plans to convert all reserves supporting its BUSD-pegged B-Token into USD1. This transition is expected to be finalized within a week, after which USD1 will serve as part of the collateral framework across multiple Binance services, including margin trading and internal liquidity mechanisms.

USD1 is backed 1:1 by U.S. Treasury bills, cash, and equivalents, and can be redeemed directly for U.S. dollars. With a market capitalization of $2.7 billion, it currently ranks as the sixth-largest stablecoin, based on data from RWA.xyz. Interest in the token surged after Abu Dhabi’s MGX used USD1 to settle a $2 billion investment in Binance, highlighting growing institutional use.

The shift comes amid heightened attention to Binance following Donald Trump’s October pardon of exchange founder Changpeng “CZ” Zhao. The decision drew scrutiny due to Trump’s increasing alignment with crypto interests. Zhao previously served a four-month prison sentence after pleading guilty in late 2023 to violating the Bank Secrecy Act.

By expanding USD1’s role and enhancing trading access, Binance is positioning the token as a central component of its evolving stablecoin ecosystem, signaling a strategic push toward stronger liquidity, user choice, and regulatory-aligned stablecoin models.