Key takeaways
- Binance listed USD1, a new USD-pegged stablecoin by World Liberty Financial (WLFI)
- Trading for the USD1/USDT pair began at 12:00 UTC on May 22, with withdrawals going live on May 23 at the same time
- Binance waived the listing fee for USD1, indicating strong support
- With a $2.13B market cap, USD1 is the fifth-largest USD stablecoin on CoinMarketCap, reflecting high demand for compliant digital assets
- USD1 is backed 1:1 by cash, US Treasuries, and fiat deposits, issued by BitGo Trust Company, and complies with AML/KYC regulations
- Currently on Ethereum and BNB Chain, USD1 plans to expand via Chainlink’s cross-chain protocol
- WLFI is linked to Donald Trump and his family, raising regulatory concerns about USD1 among US lawmakers
In a strategic move to expand its stablecoin offerings, Binance has officially listed World Liberty Financial USD (USD1), a fiat-backed stablecoin developed by Miami-based fintech firm World Liberty Financial (WLFI). Trading for the USD1/USDT pair got launched today, May 22, 2025, at 12:00 UTC, with withdrawals going live tomorrow at the same time.
What is USD1?
USD1 is a US dollar-pegged stablecoin launched in April 2025. It is issued and legally managed by BitGo Trust Company, a regulated entity based in South Dakota. The token maintains a strict 1:1 peg with the U.S. dollar and is backed by a mix of cash, U.S. Treasuries, and fiat deposits. BitGo provides custodial services and ensures compliance with anti-money laundering (AML) and know-your-customer (KYC) regulations.
The coin is designed to offer fast, secure, and low-cost digital transactions, with a clear focus on institutional-grade compliance. USD1 currently operates on Ethereum and BNB Chain, and plans are underway to integrate Chainlink’s cross-chain protocol to expand its reach to more blockchains.
Details of Binance Listing
Binance has waived the listing fee for USD1, signaling its strong support for the asset. Deposits for USD1 opened ahead of the listing, and withdrawals will be available starting May 23. The asset is paired against USDT, offering high liquidity and instant access for global traders, except in restricted jurisdictions such as the US, EU, Canada, and others, due to regulatory barriers.
Standard trading fees apply, and eligibility depends on users’ country of residence and account verification status.
Market Impact and Rapid Growth
USD1 has already made a strong market entry. With a current market capitalization of about $2.3 billion, it ranks as the fifth-largest USD-backed stablecoin. Despite its quick ascent,
WLFI is closely tied to former President Donald Trump and his family. Trump holds the title of “Chief Crypto Advocate,” while his sons serve as “Web3 Ambassadors.” This association has raised concerns among US lawmakers, especially Senate Democrats, over potential conflicts of interest.
Although critics have flagged its political links as problematic, especially with stablecoin regulation still evolving, WLFI has dismissed the allegations as “fundamentally flawed.” The company emphasizes that USD1 adheres fully to U.S. financial regulations and is audited regularly, although full reserve breakdowns remain undisclosed.
Ever-Increasing Demand for Stablecoins
Binance’s listing of USD1 reflects the growing demand for stablecoins that blend traditional financial backing with digital-native efficiency. By adding USD1, Binance not only diversifies its stablecoin portfolio but also bets on the future of regulated, politically connected digital assets.
With momentum building and controversy simmering, the crypto world is closely watching USD1’s next moves. Whether it disrupts giants like USDT and USDC or gets entangled in political red tape remains to be seen.
