What is USD1 stablecoin?

USD1 is a stablecoin designed to stay worth one US dollar. It is issued under World Liberty Financial, a crypto company publicly backed by President Donald Trump and his family. The project, and its separate WLFI governance token, are covered in what is World Liberty Financial. This guide looks only at the stablecoin.

What is USD1 crypto and what backs it?

When World Liberty Financial announced USD1 on March 25, 2025, it said the coin would be backed by short-term US Treasuries, dollar deposits and other cash equivalents, with BitGo holding the reserves. It said USD1 would be minted first on Ethereum and BNB Smart Chain, with more networks to follow.

As of October 2026, the USD1 page describes the reserves as US cash, US government money market funds and other cash equivalents. It says reserve reports are published monthly and links to a proof of reserves page. Holders are told they can redeem USD1 one for one for dollars, and the site offers a bridge to move it between networks.

What is USD1 used for?

The company pitched USD1 at first to sovereign investors and large institutions making cross-border transfers. Its site now lists wider uses:

• cross-border payments and access to dollars,
• trading, lending and borrowing in DeFi,
• payments made by AI agents through its AgentPay toolkit.

Its best-known early use came in May 2025. World Liberty co-founder Zach Witkoff said USD1 would be used to settle MGX's $2 billion investment in Binance, The Block reported. MGX is an Abu Dhabi investment firm.

How is USD1 used on Binance?

In December 2025, Binance added spot trading pairs priced in USD1, including BNB, ETH and SOL markets. It also said it would convert all collateral backing Binance-Peg BUSD into USD1 at a one to one ratio over about a week. Fee promotions on those pairs were time-limited, so check Binance's current terms.

Who regulates USD1?

In August 2026, World Liberty Trust Co, part of the venture, received conditional approval from the Office of the Comptroller of the Currency to form a national trust bank that would issue and manage USD1. It must meet conditions, including at least $20 million in capital, before final approval, and it may not take deposits or make loans. Banking Exchange reported more than $4 billion of USD1 in circulation at that time.

The US GENIUS Act says payment stablecoins are not backed by the US government and are not covered by FDIC deposit insurance. Like other stablecoins, USD1 depends on its issuer's reserves and on redemptions working as promised.