Binance Drops BUSD for Trump-Linked USD1 as New Trading Pairs Go Live

This article was first published on The Bit Journal. As part of a major move in the continuing Binance expansion, the exchange is further supporting the Trump family-linked USD1 stablecoin, introducing new no-fee trading pairs as the token gains a greater footprint on the largest crypto-based exchange in the world.

Binance Expansion Strategy Drives USD1 Adoption

The company announced on Thursday that USD1 is now exchangeable with Ether, Solana, and BNB in addition to its Bitcoin pair. The relocation is part of the wider Binance expansion plan, which will also involve the reorganization of its collateral structure and the ultimate elimination of BUSD. This conversion will be done at a one rate, where all the remaining BUSD collateral will be converted into USD1 in the coming week.

Such a shift essentially withdraws BUSD off the Binance internal system and makes USD1 its primary dollar-based collateral asset. Binance stated that USD1 is a key component of the Binance ecosystem in the future and emphasized its significance in the wider Binance expansion plan.

Stablecoin Supply Declines Amid Slower Minting

Zach Witkoff, the CEO of World Liberty Financial, the issuer of USD1, eulogized the update as a significant milestone of a stablecoin that only appeared in March. Supported by U.S. Treasury bills and issued on Ethereum and BNB Chain, USD1 has rapidly become the seventh-largest stablecoin with a market value of $2.7 billion. 

It also gained pace in May as Abu Dhabi investment firm MGX committed USD1 to invest in Binance to the tune of $2 billion, contributing further to the continued Binance expansion into institutional markets.

The supply of USD1 has slightly declined since a high of $3 billion near the end of October, and no new tokens have been minted over the past few months, the CoinGecko statistics show.

USD1 is integrating with the world’s largest exchange @binance to expand the global adoption of USD1 ☝️🦅 @worldlibertyfi

See the press release below 👇 https://t.co/8INMRIH45d

— Zach Witkoff (@ZachWitkoff) December 11, 2025

Regulatory Approval Strengthens Binance Regional Expansion

The political aspect of USD1 that relates to a U.S. president, Donald Trump, and his sons, has attracted even more attention, following Trump’s pardon of Binance founder, Changpeng Zhao, seven weeks ago. In 2024, Zhao served four months in prison because he did not establish appropriate anti-money laundering controls. Trump justified the pardon by saying that there is no crime in the offense.

The Binance expansion into the Middle East has been alongside the push to have greater integration of USD1. Recently, the Financial Services Regulatory Authority of the Abu Dhabi Global Market granted Binance three licences to act as an exchange, clearing and broker-dealer under regulation. This enhances the presence of Binance in one of the rapidly expanding digital asset jurisdictions.

Zhao Regains Legal Freedom After Pardon

The most recent news is also characterized by Binance considering a re-entry of the U.S. market with Trump pardoning Zhao a move that will lift legal limitations on his participation. The alternatives are to combine Binance.US with the global exchange or to enable the core site to directly serve American users, as another potential step of Binance expansion into regulated Western markets.

With an estimated net worth of 61.4 billion dollars, Zhao still controls an ecosystem worth up to 8.7 billion on-chain assets, which positions him among the most powerful players in the crypto industry. In the meantime, the Trump family is aggressively expanding into digital holdings and is reportedly making more than one billion dollars with crypto projects.

Conclusion

Binance’s expanded embrace of USD1 marks a pivotal shift for the exchange as it strengthens regulatory ties and positions itself for renewed U.S. ambitions. With CZ’s full return and USD1’s rising influence, Binance appears poised to reshape its global strategy while navigating an increasingly politicized stablecoin landscape.

Follow us on Twitter and LinkedIn, and join our Telegram channel to be instantly informed about breaking news!

Summary

• Binance expanded USD1 trading pairs and is replacing all BUSD collateral with USD1.
• USD1 has grown to a $2.7B market cap after major backing and rapid adoption.
• Trump’s pardon of CZ revived scrutiny as Binance eyes a U.S. return.
• New Abu Dhabi licences enhances the regulatory and global ability of Binance.

Glossary of Key Terms

Binance:  One of the world’s largest cryptocurrency exchanges.

USD1 Stablecoin:  Trump family–linked dollar-backed stablecoin, issued on Ethereum and BNB Chain.

BUSD:  Binance’s former dollar-pegged stablecoin, being replaced by USD1.

World Liberty Financial:  Company issuing USD1, co-founded by Donald Trump and his sons.

U.S. Treasury Bills:  Government debt instruments backing USD1 for stability.

MGX:  Abu Dhabi firm investing $2B in USD1 on Binance.

Frequently Asked Questions About USD1 Stablecoin

1. What is USD1?

USD1 is a stablecoin backed by U.S. Treasury bills, issued on Ethereum and BNB Chain, co-founded by Donald Trump and his sons.

2. How is Binance using USD1?

Binance added new trading pairs with ETH, SOL, and BNB and will convert all BUSD collateral into USD1.

3. Why was CZ pardoned important?

Trump’s pardon allows Binance CEO Changpeng Zhao to fully participate in operations and plan U.S. market re-entry.

References

Businesswire

Twitter

Read More: Binance Drops BUSD for Trump-Linked USD1 as New Trading Pairs Go Live">Binance Drops BUSD for Trump-Linked USD1 as New Trading Pairs Go Live