USD1 enters Binance Futures as a primary settlement stablecoin: Details

The Trump family-linked stablecoin World Liberty Financial USD [USD1] has scored a major scaling milestone on the Binance exchange.  On Thursday, the exchange announced that it will launch the BTC/USD1 pair in its Futures section from the 18th of May. According to Binance, the move would - Expand the list of trading choices and enhance users’ trading experience. Notably, this will be the first time WLFI’s  USD1 is used as a direct settlement on the platform. Previously, it was only a secondary collateral option, meaning traders who held USD1 could only use it to borrow USDT. Now, profits, losses, and even Funding Rates will all be realized in USD1, just like typical USDT trade pairs.  Commenting on the update, Zach Witkoff, WLFI CEO, said,  Major milestone for $USD1 and the future of onchain markets. The launch of the USD1/BTC perpetual pair on Binance is another step toward making $USD1 a core settlement asset across global crypto trading. Will the USD1 market grow after the partnership? Beyond Binance, USD1 has scored almost a similar scaling partnership with MEXC exchange, Aster DEX, and the institutional-focused platform Falcon.  Since the bulk of stablecoins are still within the trading ecosystem, such integrations could help the USD1 supply grow in the future.  That said, the stablecoin was launched early last year. Despite being slightly over a year old, the USD1 market supply exploded to a peak of $5.4B. As of writing, the supply had retreated to $4.5B and ranked as the fifth-largest stablecoin by market cap.  In fact, TownSquare, a DeFi cross-chain lending platform, announced $100 million worth of USD1 to scale on-chain yield.  Separately, World Liberty Financial has tied some of its reward programs to USD1 and WLFI.  Overall, USD1 strategic scaling plans could help it improve its share of the broader stablecoin market. Capture trading and DeFi yields, and you’re halfway there. That’s how Circle’s USDC and Tether’s USDT have scaled their dominance.  Currently, the USD1 market supply is dominated by BNB Chain (40%), followed by Ethereum and Solana.  In fact, USD1 has seen a faster growth rate than the broader stablecoin market. On a year-on-year (YoY) basis, it surged from $2B to over $4B, marking 100% growth or 2x expansion.  On the contrary, the overall stablecoin market surged from $240B to $317B over the same period, or 32% surge.   Final Summary Binance will launch the BTC/USD1 perpetual pair, allowing the stablecoin to be used as a primary settlement asset on the platform for the first time.  The move could accelerate USD1 adoption after its 2x expansion on a YoY basis to over $4B in supply.