Binance Lists USD1 Stablecoin Amid Political Scrutiny

Binance has listed USD1, a stablecoin issued by World Liberty Financial (WLFI), on its spot trading platform. The listing, which occurred on May 22, marks a significant milestone for USD1, which has rapidly grown to a market capitalization of over $2.1 billion since its launch in March 2025. The stablecoin is pegged 1:1 to the U.S. dollar and is backed by cash holdings, short-term U.S. Treasury securities, and U.S. dollar bank deposits. BitGo Trust Company, a U.S.-regulated entity, is responsible for issuing and managing the token.

The rapid ascent of USD1 has drawn scrutiny from U.S. lawmakers, particularly due to its ties to Donald Trump. Trump holds the title of “Chief Crypto Advocate” at WLFI, and his sons have been named as “Web3 Ambassadors.” This political connection has raised concerns among Senate Democrats, especially as comprehensive stablecoin regulation remains a hot topic in Washington. The GENIUS Act, which aims to establish a federal framework for stablecoins, is currently pending approval and covers reserves, audits, and compliance.

In addition to its listing on Binance, WLFI is planning an airdrop of USD1 tokens to eligible holders of its WLFI token. A governance proposal published on May 7 and approved the following week saw 6.8 billion votes in favor of the airdrop. Details regarding eligibility and distribution are expected to be announced soon.

The listing on Binance is a major step for USD1, which has quickly become one of the top stablecoins by market capitalization. Withdrawal functions for USD1 on Binance are scheduled to go live at 20:00 Beijing time (12:00 UTC) on May 23. This move is expected to further boost the stablecoin's growth and visibility in the market.

USD1’s growth and the political affiliations of its backers have drawn attention from U.S. lawmakers. Senate Democrats have voiced concerns about WLFI’s ties to President Donald Trump, who holds the title of “Chief Crypto Advocate” at the firm. Trump’s sons have also been named as “Web3 Ambassadors.” These political links are drawing attention particularly as discussions around comprehensive stablecoin regulation remain a hot topic in Washington, with legislative efforts like the GENIUS Act still pending approval. The GENIUS Act, recently advanced by the U.S. Senate, aims to establish a federal framework for stablecoins, covering reserves, audits, and compliance.