Binance to list World Liberty Financial’s USD1 stablecoin on May 22

Binance will list World Liberty Financial’s USD1 stablecoin on May 22, marking a major milestone for the controversial digital dollar alternative. 

According to the official announcement, USD1 will begin trading at 12:00 UTC on May 22 and withdrawals will open the following day. USD1 is a fiat-backed stablecoin designed to maintain a 1:1 peg with the U.S. dollar. It was launched in March by World Liberty Financial, a Miami-based fintech firm tied to Donald Trump and his family. 

The token is backed by cash, short-term U.S. Treasuries, and dollar deposits and is issued and managed by BitGo Trust Company, a regulated U.S. trust entity. While reserve audits are conducted regularly, detailed breakdowns remain private.

The Binance listing could significantly boost USD1’s liquidity and visibility. Already listed on exchanges like KuCoin, USD1 has quickly become the seventh-largest stablecoin by market cap, surpassing a $2.1 billion market capitalization in May. 

Its rapid rise has been fueled by institutional backing, including a $2 billion investment agreement with Abu Dhabi’s MGX, as well as its growing application in retail payments and decentralized finance platforms. USD1 currently operates on Ethereum (ETH) and BNB Chain (BNB), with plans to use Chainlink’s (LINK) cross-chain protocol to expand to other networks.

USD1 aims to become a major competitor to well-known stablecoins like Tether (USDT) and USD Coin (USDC) by offering features like fee-free minting and institutional-grade custody. But there has been some controversy surrounding stablecoin’s rise.

U.S. lawmakers, particularly Senate Democrats, have expressed concern about the Trump family’s close ties to WLFI. The company’s “Chief Crypto Advocate” is Donald Trump, and its “Web3 Ambassadors” are his sons. Given that stablecoin regulation, including the proposed GENIUS Act, is still a contentious topic, critics argue that this raises the possibility of conflicts of interest.

Despite the political scrutiny, WLFI maintains that USD1 is fully compliant with U.S. regulations, including anti-money laundering and know-your-customer standards. A recent legal response to a congressional probe dismissed the concerns as “fundamentally flawed.” As USD1 prepares to debut on the world’s largest crypto exchange, all eyes are on whether its momentum can continue.