Trump-Linked USD1 Stablecoin Lands on Binance Despite Political Heat
Binance is set to list USD1, the stablecoin issued by World Liberty Financial (WLFI), on May 22, marking a pivotal moment for the politically charged digital dollar alternative.
According to Binance’s announcement, trading for USD1 will begin at 12:00 UTC on May 22, with withdrawals opening the following day. USD1 is a fiat-backed stablecoin intended to maintain a 1:1 peg with the U.S. dollar. It was launched in March by Miami-based fintech firm WLFI, which is closely linked to Donald Trump and his family.
The token is backed by cash, short-term U.S. Treasuries, and dollar deposits, and is issued and administered by BitGo Trust Company — a regulated U.S. trust entity. While regular audits are conducted, detailed reserve breakdowns have not been made public.
The listing on Binance could dramatically increase USD1’s liquidity and global exposure. Already available on exchanges like KuCoin, USD1 has quickly climbed the ranks to become the seventh-largest stablecoin by market capitalization, surpassing $2.1 billion in May. Its meteoric rise is driven by institutional support — including a $2 billion investment deal with Abu Dhabi-based MGX — and growing adoption in both retail payments and DeFi applications.
Currently operating on Ethereum and BNB Chain, USD1 plans to expand to additional blockchains through Chainlink’s cross-chain interoperability protocol.
Positioning itself as a strong competitor to established stablecoins like USDT and USDC, USD1 promotes features such as fee-free minting and institutional-grade custody. However, its rise has sparked controversy due to its political affiliations.
U.S. lawmakers, especially Senate Democrats, have raised concerns about WLFI’s ties to the Trump family. Former President Donald Trump serves as the company’s “Chief Crypto Advocate,” while his sons are listed as “Web3 Ambassadors.” With stablecoin regulation — including the debated GENIUS Act — still under discussion, critics argue this connection could lead to potential conflicts of interest.
WLFI, for its part, maintains that USD1 complies fully with U.S. regulatory standards, including anti-money laundering (AML) and know-your-customer (KYC) rules. In response to a recent congressional inquiry, the company dismissed legal concerns as “fundamentally flawed.”
As USD1 prepares for its debut on the world’s largest crypto exchange, the industry is watching closely to see whether its momentum will hold — or whether political scrutiny could slow its ascent.
