Binance has announced that it will launch the BTC/USD1 trading pair in its futures section on May 18. This means that USD1, a stablecoin issued by World Liberty Financial, will have its usage expanded further on major trading platforms.

First time used directly for settlement

Previously, USD1 was primarily used as secondary collateral on Binance, with holders typically using it to borrow USDT. With the launch of the new trading pair, profits, losses, and funding rates for the relevant contracts will be settled directly in USD1, marking its first time achieving primary settlement asset status on Binance.

Binance stated that this move aims to increase trading options and improve the user experience. Similar to common USDT-settled contracts, BTC/USD1 will allow USD1 to directly function as a settlement tool, rather than just a secondary collateral tool.

It has expanded to multiple platforms.

Besides Binance, USD1 has also been integrated with MEXC, Aster DEX, and Falcon, a platform targeting institutions. As more platforms adopt this stablecoin, its use cases are expanding from lending and holding to more direct transaction settlements.

In the DeFi space, cross-chain lending platform TownSquare also announced the introduction of $100 million worth of USD1 to expand on-chain yield scenarios. Meanwhile, World Liberty Financial has also pegged some of its rewards programs to USD1 and WLFI.

Supply once rose to $5.4 billion

The article states that USD1 was launched early last year, with its supply once rising to $5.4 billion before falling back to about $4.5 billion, making it the fifth largest stablecoin in the world by market capitalization.

From an on-chain distribution perspective, USD1 is currently mainly concentrated in the BNB Chain, accounting for approximately 40%, followed by Ethereum and Solana. On a year-over-year basis, its supply has increased from approximately $2 billion to over $4 billion, representing a growth rate of approximately 100%, higher than the overall stablecoin market's growth rate of approximately 32% during the same period.