Binance cozies up to Trumps crypto platform with USD1 stablecoin links
Analysis
Price Impact
MedBinance's strategic move to expand support for usd1 stablecoin, including adding fee-free trading pairs for major cryptocurrencies (btc, eth, sol, bnb) and converting busd collateral to usd1, is a significant shift in its stablecoin strategy. this deep integration within the largest exchange's ecosystem could boost usd1's utility and solidify binance's stablecoin offerings post-busd issues, indirectly supporting bnb.
Trustworthiness
HighThe information is based on official announcements from binance and world liberty financial, as reported by cointelegraph, a reputable crypto news source. market data from coingecko is also cited.
Price Direction
NeutralWhile increased utility for usd1 on binance and the introduction of fee-free trading pairs are generally positive for the exchange's ecosystem and could indirectly benefit bnb, the political ties (trump connection, cz pardon) introduce a degree of uncertainty and potential regulatory scrutiny. the declining supply of usd1 also warrants caution. the immediate price impact on bnb and other listed coins might be limited as the market digests these strategic implications, leading to a neutral stance with potential for slight upside if adoption accelerates.
Time Effect
LongStrategic shifts by the world's largest crypto exchange, especially concerning its stablecoin infrastructure and major trading pairs, tend to have lasting implications for its ecosystem and the broader market. the long-term success of this integration and the political perception will play out over time.
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Article Content:
Martin Young 2 minutes ago Binance cozies up to Trumps crypto platform with USD1 stablecoin links Binance added a host of zero-fee trading pairs for the Trump family’s stablecoin and used it to back its own stablecoin collateral. Listen 0:00 News COINTELEGRAPH IN YOUR SOCIAL FEED The world’s largest crypto exchange, Binance, has expanded its listings to include more trading pairs tied to the Trump family’s stablecoin. Binance announced on Thursday that it has expanded support for World Liberty Financial’s USD1 stablecoin by adding fee-free trading pairs for major tokens, including Ether ( ETH ), Solana ( SOL ) and BNB ( BNB ) in addition to its already listed Bitcoin ( BTC ). The exchange said it would also convert all collateral assets backing its stablecoin, BUSD, into USD1 at a 1:1 ratio, within a week. “The transition means USD1 will become an integral part of Binance’s updated collateral structure, further embedding the stablecoin within the exchange’s ecosystem,” Binance said. Increasing access to USD1 on Binance Zach Witkoff, co-founder and CEO of World Liberty Financial, praised the move, stating, “Binance’s expansion of USD1 marks an important moment in WLFI’s effort to make digital US dollar stablecoins available to people everywhere.” USD1 is backed by US Treasury bills and launched on Ethereum and BNB Chain in March. It has grown to become the seventh-largest stablecoin with a market capitalization of $2.7 billion, bolstered by a decision from Abu Dhabi’s investment firm, MGX, to use USD1 for a $2 billion investment in Binance in May However, there has been no new issuance of USD1 for months, and the supply has declined slightly from its peak of $3 billion in late October, according to CoinGecko. Related: World Liberty Financial weighs $1.5B public company to hold WLFI tokens USD1 market capitalization declines. Source: CoinGecko Trump recently pardons Binance founder Alongside his sons, President Donald Trump is a co-founder of World Liberty Financial and pardoned Binance founder Changpeng Zhao seven weeks ago. Zhao was sentenced to four months in prison in April 2024 after pleading guilty to failing to implement an adequate Anti-Money Laundering (AML) program at Binance. Trump said he pardoned Zhao after the Binance founder saw support from “a lot of people” who told him “what he did is not even a crime.” Magazine: XRP’s ‘now or never’ moment, Kalshi taps Solana: Hodler’s Digest # Business # Donald Trump # Binance # Stablecoin # DeFi Add reaction