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Binance, the world's largest cryptocurrency exchange by trading volume, announced a limited-time "booster program" on December 24, 2025, offering up to 20% annualized percentage rate (APR) on USD1 flexible earn products for deposits exceeding $50,000.
USD1 is the U.S. dollar-pegged stablecoin issued by World Liberty Financial (WLFI), a crypto venture associated with the family of U.S. President Donald Trump.
The promotion, described as the "first" such initiative for USD1 on Binance, runs until January 23, 2026, with bonus yields distributed daily to users' earn accounts.
Binance stated the program aims to help USD1 holders "maximize their rewards" through passive income on flexible deposits.
Key Takeaways
- Binance offers up to 20% APR on USD1 flexible deposits over $50,000 until January 23, 2026.
- USD1 market cap surged $150 million post-announcement, exceeding $3 billion total.
- Promotion drives adoption amid competition with USDT and USDC.
- USD1 backed 1:1 by U.S. Treasuries and cash equivalents.
- Deep Binance integrations include fee-free pairs and BUSD collateral conversion.
Immediate Market Impact and USD1 Growth
Following the announcement, USD1's market capitalization surged by approximately $150 million in a single day, rising from $2.74 billion to $2.89 billion.
Recent data indicates further growth, with USD1 crossing the $3 billion threshold shortly after, solidifying its position as the seventh largest stablecoin globally, ahead of several established rivals but behind PayPal's PYUSD.
This rapid inflow highlights the influence of high-yield incentives in the stablecoin sector, where exchange promotions can drive significant short-term liquidity shifts.
USD1 maintains a 1:1 peg to the U.S. dollar, backed by reserves including short-term U.S. Treasury bills, cash deposits, and cash equivalents.
Background on World Liberty Financial and USD1
World Liberty Financial launched USD1 in March 2025 as its flagship product, positioning it as a fully redeemable digital dollar for decentralized finance (DeFi) and payments.
WLFI's broader crypto activities reportedly generated $802 million in income during the first half of 2025.
USD1 has benefited from multiple integrations on Binance throughout the year:
- In May 2025, Abu Dhabi-based MGX used $2 billion in USD1 to settle an investment into Binance.
- On December 11, 2025, Binance added fee-free trading pairs (e.g., BTC/USD1, ETH/USD1, SOL/USD1, BNB/USD1) and converted all collateral backing its Binance USD (BUSD) stablecoin to USD1 at a 1:1 ratio.
- Earlier efforts included a June 2025 airdrop of $4 million in USD1 to WLFI token holders.
These steps have embedded USD1 deeply into Binance's ecosystem, enhancing its liquidity and usability compared to dominant stablecoins like Tether's USDT and Circle's USDC.
Competitive Landscape and Regulatory Scrutiny
The stablecoin market remains dominated by USDT (over $120 billion market cap) and USDC (around $35 billion), with newer entrants like USD1 competing through exchange partnerships and yield offerings.
Binance's 20% APR significantly exceeds typical rates on major stablecoins, which often hover below 5-10% on earn products.
However, USD1's ties to WLFI have drawn scrutiny. Reports in July 2025 alleged Binance contributed code to USD1's development, a claim denied by Binance founder Changpeng Zhao.
U.S. lawmakers, including Senators Elizabeth Warren and Jack Reed, have called for investigations into WLFI's potential links to illicit activities, which the company has rejected.
Political dimensions persist, with critics noting Binance's support following President Trump's pardon of Zhao earlier in 2025.
WLFI plans further expansions, including a debit card integrating USD1 with Apple Pay for peer-to-peer payments and trading.
Conclusion
Binance's high-yield promotion accelerates USD1's growth in a competitive stablecoin market, leveraging deep platform integration to challenge incumbents.
Sustained adoption post-promotion will depend on ongoing utility and regulatory clarity.
Read Next:
- 2025 Stablecoin Year-End Report
- Best Chain for Stablecoin Micropayments in 2026
- Best Stablecoin On/Off-Ramps for 2026 Compared
FAQs:
1. What is the Binance USD1 booster program?
A limited-time earn promotion offering up to 20% APR on flexible USD1 deposits exceeding $50,000, running until January 23, 2026, with daily reward distributions.
2. How much did USD1's market cap increase after the announcement?
Approximately $150 million in one day, from $2.74 billion to $2.89 billion, later surpassing $3 billion.
3. What backs USD1?
Short-term U.S. Treasury bills, cash deposits, and cash equivalents, redeemable 1:1 for U.S. dollars.
4. Why is Binance promoting USD1?
To boost usage and rewards for holders, building on prior integrations like trading pairs and collateral shifts.
5. Is USD1 facing regulatory concerns?
Yes, due to WLFI's political associations and alleged Binance ties, with calls for investigations from U.S. senators.
Disclaimer:
This content is provided for informational and educational purposes only and does not constitute financial, investment, legal, or tax advice; no material herein should be interpreted as a recommendation, endorsement, or solicitation to buy or sell any financial instrument, and readers should conduct their own independent research or consult a qualified professional.
