Binance Supports Trump's USD1 Stablecoin

Binance, the largest digital asset exchange in the world, plays a crucial role in the development of the 1 USD stablecoin launched by World Liberty Financial Inc. of the Trump family. Binance has written a smart contract managing USD1, allowing the creation and use of this currency in transactions worth 2 billion dollars this spring, sources familiar with the matter told Bloomberg. This support was given despite Binance founder Changpeng Zhao pleading guilty in 2023 for not maintaining an effective anti-money laundering program and then publicly requesting a presidential pardon. Stablecoin USD1 Boosts UAE's $2 Billion Investment in Binance Stake The stablecoin pegged at 1 USD, backed by cash, treasury bonds, and repurchase agreements, plays a key role in a prominent deal as the UAE-based investment company MGX uses this currency to acquire shares in Binance. Blockchain data shows that over 90% of USD1 tokens, equivalent to more than 2 billion dollars, remain in Binance wallets, generating significant interest income potentially reaching tens of millions of dollars each year for the Trump family. The role of Binance goes beyond just developing the source code. This exchange has actively promoted USD1 to 275 million users, a valuable advantage in the competitive stablecoin market. However, both Binance and World Liberty have not confirmed whether any payments were exchanged to receive support from Binance. The spokesperson for Binance declined to comment on crypto support or investment agreements but asserted that USD1 has undergone Binance's standard listing process. The spokesperson also noted that Zhao is no longer the CEO and described his plea for clemency as a personal matter. The connection between Zhao, the person seeking clemency, and former President Donald Trump, who could grant it, has sparked considerable criticism.

Legal experts emphasize the unprecedented nature of a sitting president's personal financial interests intersecting with official duties. Crypto projects backed by the Trump family have quickly added hundreds of millions of dollars to their digital assets, while regulatory enforcement against crypto companies has been relaxed during his tenure. Eric Trump believes that his family's interest in cryptocurrency is due to banking restrictions and the appeal of decentralization. The Relationship Between Binance And World Liberty Originates From The Meeting Between CZ And The Person Appointed By Trump The collaboration between Binance and World Liberty is said to have begun after Zhao met Steve Witkoff, who was appointed by Trump and is a co-founder of World Liberty, immediately after Trump won the election. Despite the public denial of this meeting, the relationship continues to develop, leading to Binance's involvement in the launch of this stablecoin and significant transactions. USD1 aims to provide a stable digital dollar for faster and cheaper cross-border payments. Although stablecoins can be profitable, generating billions of dollars in annual profits for issuers, there are still concerns about regulatory oversight and the potential for abuse. However, this stablecoin supported by Trump has no connection to illegal activities and is managed by reserves overseen by VanEck and State Street. Meanwhile, Donald Trump continues to capitalize on the growth momentum of the cryptocurrency market. According to the financial report released last Friday, the former president has garnered 58 million USD from cryptocurrency projects in 2024, primarily through the sale of WLFI tokens. The total amount ranks only behind his income from hotel services and is expected to rise further in 2025 with projected token sales of 390 million USD and profits from his meme coin, launched in January. $BNB {spot}(BNBUSDT)