Binance, the world’s largest cryptocurrency exchange, announced on Thursday that it will add major new trading pairs denominated in the USD1 stablecoin and convert all collateral backing its Binance-Peg BUSD token into USD1 at a 1:1 ratio, marking a significant shift in the exchange’s stablecoin infrastructure.
The move integrates the USD1 stablecoin, issued by World Liberty Financial (WLFI), more deeply into Binance’s spot markets and collateral structure — a rare step that could reshape how stablecoins are used across one of the industry’s largest trading venues.
New trading pairs and broader access
As of 08:00 UTC on Thursday, Binance users can trade USD1 with several of the exchange’s most liquid markets, including:
- BNB/USD1
- ETH/USD1
- SOL/USD1
These additions make the stablecoin accessible in some of Binance’s highest-volume trading pairs for major tokens. The exchange is also enabling fee incentives across these markets, including zero fees on USD1/USDT and USD1/USDC trades and special fee waivers for VIP traders.
In addition, Binance is activating spot algo order support (Trading Bots) for the newly listed markets, giving traders more tools for automated strategies using USD1.
Conversion of BUSD collateral
In a coordinated update, Binance said it will convert all collateral assets backing Binance-Peg BUSD (B-Token) into USD1 at par, a process expected to take up to one week. After completion, USD1 will become a central part of the exchange’s internal collateral and margin systems.
The transition means USD1 will occupy a core liquidity and collateral role previously held by BUSD, further embedding the stablecoin into Binance’s infrastructure.
About USD1 and World Liberty Financial
USD1 is a fully redeemable, dollar-backed stablecoin supported by U.S. Treasury bills, cash deposits, and other cash equivalents and is redeemable at a 1:1 ratio for U.S. dollars.
The token was launched in March 2025 and has rapidly expanded its footprint across various blockchain networks and exchanges. It gained additional prominence after a roughly $2 billion investment by Abu Dhabi-based firm MGX into Binance, settled in USD1, which highlighted institutional interest in the asset.
World Liberty Financial’s platform is described as a decentralized finance (DeFi) protocol and governance ecosystem that aims to broaden access to digital dollar infrastructure globally.
Market and industry implications
Analysts say the integration of USD1 into Binance’s core systems — including trading pairs, fee structures, and collateral support — could accelerate adoption of alternative stablecoins beyond traditional options like USDT and USDC.
However, the prominent role of USD1 — including its conversion from a Binance-Pegged BUSD position — has drawn heightened attention due to political associations and regulatory scrutiny around stablecoins and crypto ecosystem governance.
What to watch next
- User adoption trends: whether traders will migrate liquidity to USD1 pairs on Binance.
- Stablecoin market share: how USD1’s role evolves relative to incumbents such as USDT and USDC.
- Regulatory reactions: how U.S. and global regulators respond to a major exchange reworking stablecoin collateral structures.
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