Binance Aids Trump-Tied Firm in USD1 Stablecoin Launch, $2 Billion Deal

Binance, a prominent cryptocurrency exchange, has been reported to have assisted in the creation of the stablecoin USD1, issued by World Liberty Financial (WLF), a firm with ties to the Trump family. According to sources familiar with the matter, Binance played a key role in developing the smart contract code that powers USD1, which was launched on March 4. This collaboration is part of a broader effort by WLF to integrate traditional finance with on-chain tools, including the launch of a $1 stablecoin.

The involvement of Binance in this project is significant given the high-profile nature of World Liberty Financial and its connections to the Trump family. The stablecoin, USD1, is designed to maintain a stable value pegged to the US dollar, providing a reliable medium of exchange within the cryptocurrency ecosystem. The development of USD1 is seen as a strategic move to integrate traditional financial systems with the burgeoning world of digital assets.

The collaboration between Binance and World Liberty Financial has also led to a substantial deal with an investment firm based in Abu Dhabi, reportedly worth $2 billion. This investment underscores the growing interest in stablecoins and their potential to revolutionize the financial landscape. The partnership highlights the increasing convergence of traditional finance and cryptocurrency, as stablecoins offer a stable and predictable value that can be used for various financial transactions.

The development of USD1 by World Liberty Financial, with the technical support of Binance, represents a significant step in the evolution of stablecoins. Stablecoins are designed to mitigate the volatility typically associated with cryptocurrencies, making them more suitable for everyday transactions and as a store of value. The involvement of a major player like Binance in the creation of USD1 adds credibility to the project and signals a growing acceptance of stablecoins in the financial community.

The collaboration between Binance and World Liberty Financial also raises questions about the regulatory environment for cryptocurrencies. As stablecoins gain traction, regulators around the world are paying closer attention to their potential impact on financial stability and consumer protection. The involvement of high-profile figures and firms in the development of stablecoins could accelerate regulatory scrutiny and potentially lead to new guidelines and frameworks for the industry.

According to the report, 90% of all the USD1 coins used in the transaction remained in Binance’s wallets, potentially generating tens of millions of dollars in interest for the Trump family. This raises questions about potential conflicts of interest and the use of political influence for business gain. The reported relationship between one of the world’s largest crypto exchanges and a business closely tied to the US president highlights the complex interplay between politics and the cryptocurrency industry.

Changpeng “CZ” Zhao, the former CEO of Binance, pleaded guilty to one felony count as part of a settlement with US authorities. Although he had already served four months in prison, he said in May that he was seeking a presidential pardon. Such a pardon could potentially allow Zhao to return to a managerial or operational role at a US crypto business. At the time of publication, he had not publicly commented on the report.

Trump’s crypto ventures have been under scrutiny from many lawmakers since before he took office. The president made several campaign promises suggesting that he would tailor policies for the crypto industry. Among his financial entanglements were World Liberty Financial and its stablecoin, the launch of his memecoin Official Trump (TRUMP) and contributions from crypto executives who supported his campaign.

The report came as Republican leaders in the House of Representatives are expected to consider three crypto bills, among them legislation to regulate payment stablecoins. The GENIUS Act has already passed the Senate and is expected to receive a floor vote in the House soon. Though Democrats in the Senate initially stopped a crucial vote for the stablecoin bill, citing Trump’s crypto interests, it ultimately passed with bipartisan support. It’s unclear whether the bill will have enough support to pass in the House, where Republicans also hold a slim majority. Trump has suggested that he would immediately sign an unamended bill if it is passed.