Binance Promotes Trump Family’s Stablecoin With 20% Yield
Binance, the world’s largest crypto exchange, said it will start offering users up to 20% annualized yield on USD1, the stablecoin issued by President Donald Trump’s family crypto venture World Liberty Financial.
The promotion on Binance, set to last for a month, is designed to help drive usage of USD1. The market circulation of USD1 jumped to $2.9 billion on Wednesday from $2.7 billion on Tuesday, making it the 6th largest stablecoin in the world.
“Nothing says Christmas like real-world adoption. USD1 running a massive holiday campaign on Binance is just the beginning,” Donald Trump Jr., co-founder of World Liberty, said in a tweet.
Stablecoins are supposed to invest in safe assets to maintain their 1 to 1 peg against the dollar. Those assets pay roughly 3.6% today, meaning Binance or World Liberty Financial or both are losing money on the promotion.
So far, most of USD1’s growth was driven by Abu Dhabi sovereign wealth fund MGX’s decision in May to use the stablecoin to pay for its $2 billion investment in Binance. The move has led to criticisms, such as by Senator Elizabeth Warren, that it boosted the fortune of Trump’s family business as Binance founder Changpeng Zhao successfully lobbied for a pardon. Binance has denied such claims