USD1's Binance listing comes from high market demand. (in image, Eric Trump, Donald Trump Jr, Zach Witkoff, Zak Folkman). | Credit: Spencer Platt/Getty Images.
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Key Takeaways
USD1 is the fifth-largest stablecoin with a market cap of $2.48 billion.
Binance processed a $2 billion USD1 settlement between WLFI and a UAE investment firm.
WLFI-owned ALT5 Sigma will acquire $1.5 billion in WLFI as part of its treasury strategy.
World Liberty Financial’s flagship stablecoin, USD1, has one of the largest stablecoins on the market in a very short space of time.
According to its co-founders, this is thanks to high market demand on leading crypto exchange Binance, but there’s no formal partnership in place.
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Speaking with Colin Wu on the WuBlockchain Podcast, WLFI co-founders Zak Folkman and Zach Witkoff revealed that the “major partnership” between crypto exchange Binance and WLFI’s stablecoin, USD1, is a misconception.
This is largely down to a $2 billion deal between the World Liberty Financial and a UAE-based investment firm, MGX, which agreed to accept USD1 as settlement.
Witkoff highlights that Binance “simply” accepted the funds. There’s no formal “partnership” to speak of.
Citing high demand on PancakeSwap and the BNB Chain, as well as Binance Launchpad, Witkoff explains that these funds stayed on Binance as a result.
In the past 24 hours, USD1 has recorded $358 million in trading volumes.
Folkman notes that the Binance Smart Chain (BSC) ecosystem was been welcoming, which has seen them develop partnerships with ListaDAO, PancakeSwap, espousing that “nearly every protocol” on BSC is “very eager” to work with WLFI.
In addition, Folkman notes that projects such as Sahara AI leveraged USD1 in its initial exchange offering (IEO).
Moving Ahead
Then, there’s the ALT5 Sigma deal, which saw WLFI acquire a majority $1.5 billion stake in the firm, half of which was paid in WLFI tokens, and resulted in Witkoff and Folkman being placed in prestigious positions on the firm’s board of directors.
In celebration, Witkoff, Folkman, alongside Donald Trump Jr. (ALT5’s new board Director), rang the opening bell at the Nasdaq exchange.
This will see the firm adopt a “WLFI Treasury Strategy” to the tune of $1.5 billion. Witkoff explains that the deal will amplify USD1’s reach, as ALT5 Sigma has some “very strong” tech, especially in the realms of stablecoins.
Secondly, he adds, the firm is “actively supporting this token.” Adding:
“We’re bringing it to Nasdaq and allowing it to trade freely. In the future, the company plans to continue acquiring more tokens.”
There is some controversy surrounding the move, with rumors of a U.S. Securities and Exchange Commission (SEC) probe into the deal recently circulating.
Eddie is a gaming and crypto writer at CCN. Covering the often weird and wonderful world of Web3 with an adoring, but skeptical eye.
Prior to CCN, Eddie has spent the past seven years working his way through the crypto, finance, and technology industry. He began with PR and journalism with Bitcoin PR Buzz and BitcoinNews.com, eventually working his way to become a copywriter with a dozen firms, including the likes of Polkadot before returning to journalism in 2023.
Having studied Radio production and journalism at University in the UK, Eddie spent a few years making podcasts and presenting on a local London radio station as he built up his writing chops.
A lifelong skateboarder, Eddie can often be found at the skatepark or touring the streets looking for something new to try. That, or kicking back playing JRPGs on his original PSP.
