World Liberty Financial’s USD1 Stablecoin Gains Traction
World Liberty Financial’s stablecoin, USD1, has secured its place in Binance’s fundamental architecture, according to a Thursday announcement from the crypto enterprise supported by former U.S. President Donald Trump. Initially launched on Ethereum and the Binance-linked BNB Chain in September, USD1 is now actively trading on Binance, the largest cryptocurrency exchange globally, against notable cryptocurrencies such as BNB, Ethereum, and Solana.
Strengthening Ties with Binance
This development marks a significant strengthening of the relationship between World Liberty and Binance, especially in light of Trump’s pardon for Binance’s founder and former CEO, Changpeng Zhao, which took effect last month after Zhao served a brief prison term related to money laundering offenses.
Incentives for Users
In an incentive to attract users from other major stablecoins, World Liberty has announced that no fees will be charged for Binance customers converting Circle’s USDC or Tether’s USDT into USD1. Zach Witkoff, the chief executive officer and co-founder of World Liberty, emphasized the importance of this partnership, stating:
“Integrating USD1 into Binance’s trading and liquidity systems enhances access for hundreds of millions of users to our stablecoin,”
while asserting the project’s commitment to stablecoin development.
Investment and Market Performance
Additionally, USD1 recently became the focal point of a $2 billion investment from the Abu Dhabi sovereign wealth fund MGX, a move that has drawn scrutiny and accusations of corruption from various U.S. lawmakers, including Senator Elizabeth Warren.
As for market performance, World Liberty’s governance token, WLFI, is currently valued at approximately $0.14—a decline of 5% from the previous day and reflecting a 30% decrease since its launch. The USD1 stablecoin, collateralized by cash reserves and U.S. Treasuries, is seeing its market capitalization fluctuate around $2.75 billion, a slight increase from its $2.6 billion launch figure in September.
Trading Activity
While USD1 is accessible through exchanges like Coinbase and Kraken, its trading activity has been predominantly centered on the platform Bullish, which reported $55 million in USD1 trading volume recently. Binance, in comparison, accounted for about $38 million of USD1 transactions during the same timeframe, with a significant portion conducted against Tether’s USDT.
Decrypt has solicited comments from Binance regarding these developments.
