How Binance Came To Hold 87% Of Trump-Affiliated USD1 Stablecoin

Binance holds approximately 87% of all USD1 stablecoin in circulation, totaling roughly $4.7 billion of the $5.4 billion total supply, according to a Forbes analysis of Arkham Intel blockchain data. USD1 is issued by World Liberty Financial, a crypto venture where a Trump-affiliated LLC owns about 38% of the company.

The concentration represents the highest third-party exchange holdings among the top 10 stablecoins by market cap. 

According to Forbes, Binance cannot serve U.S. customers under its 2023 Treasury Department settlement terms, meaning the 87% held in Binance-controlled wallets mostly represents accounts outside the United States, assuming proper compliance.

Why Does Binance Control So Much USD1 Supply?

Blockchain data shows Binance's USD1 holdings rose steadily since late 2025 through promotions and strategic partnerships that concentrated the stablecoin on its platform.

In late January, Binance announced USD1 holders would receive $40 million worth of World Liberty Financial's WLFI governance token. Two days after the announcement, World Liberty Financial transferred approximately $40 million in WLFI tokens to Binance, according to Arkham Intel data. The promotion boosted trading activity and incentivized users to hold USD1 on Binance rather than move it to other platforms.

The MGX deal proved even more significant for concentration. In May 2025, MGX, a state-backed Abu Dhabi technology fund, used $2 billion worth of USD1 to invest in Binance, per Forbes. The transaction placed a large portion of USD1's reserves under Binance's custody while increasing interest income for World Liberty Financial's owners. A stablecoin issuer typically invests backing dollars in assets like U.S. Treasuries and keeps the interest, currently around 3.6% annually.

In December, Binance converted assets backing its sunsetting stablecoin BUSD into USD1. World Liberty Financial's announcement stated this move "further embedded the stablecoin within the exchange's ecosystem," making it "an integral part of Binance's updated collateral structure."

What Are The Risks Of Stablecoin Concentration?

Independent crypto researcher Molly White told Forbes the concentration is unusual, though "not terribly surprising" given Binance's USD1 promotions, which she called the most generous she's seen for any stablecoin.

White identified "at least theoretical risk" when a token concentrates heavily at one exchange. Assets could become locked during bankruptcy proceedings, technical failures, or legal disputes. 

The concentration also gives Binance "some degree of leverage" over World Liberty Financial, especially since some of the 87% likely represents assets the exchange owns rather than holds for customers.

Corey Frayer, a former senior adviser on crypto markets to the SEC chair during the Biden administration, told Forbes the concentration "suggests that USD1 was never meant to be a real stablecoin," but just a way to funnel money to Trump.

Binance's U.S. affiliate, Binance US, holds $1,119 of USD1 according to Arkham Intel. 

How Is Trump Connected To World Liberty Financial?

World Liberty Financial launched in September 2024, "inspired by the vision of Donald J. Trump." The company lists him as co-founder emeritus alongside Donald Trump Jr., Eric Trump, and Barron Trump.

An LLC affiliated with Trump and some family members owns about 38% of World Liberty Financial and 22.5 billion WLFI tokens, according to Reuters. The LLC receives 75% of proceeds from WLFI token sales, according to fine print on the company's website.

Trump reported making $57.4 million from World Liberty Financial on his latest financial disclosure, covering the 12 months ending in December 2024. He receives this income through the Donald J. Trump Revocable Trust, where he serves as sole donor and beneficiary while Donald Trump Jr. acts as trustee.

Forbes estimates World Liberty Financial's token added about $1 billion to Trump's net worth as of October 2025. The Trump Organization confirmed in an April regulatory filing in the United Kingdom that Trump retains control over his businesses while in office.

What Is The Difference Between USD1 And WLFI?

USD1, announced in March 2025, operates as a stablecoin meant to be redeemable 1-to-1 with U.S. dollars. The stablecoin is backed by dollars and U.S. government money markets, following the standard stablecoin model used by Tether's USDT and Circle's USDC.

WLFI is a governance token World Liberty Financial began selling in October 2024 to accredited and foreign investors. The tokens do not represent ownership in any company and are not backed by underlying assets. They were originally non-transferable until holders voted in July to unlock some tokens. WLFI tokens allow holders to vote on decisions affecting the project.

Binance account holders currently receive WLFI tokens in exchange for holding USD1 through the promotion running until February 20. World Liberty Financial transferred 235 million WLFI tokens to Binance to fund the promotion.

Why Are Critics Questioning The Binance-Trump Connection?

The timing of recent developments has intensified scrutiny beyond standard market structure concerns. Changpeng Zhao (CZ), Binance's founder, was sentenced in 2024 for violations of U.S. anti-money laundering regulations. The exchange paid fines exceeding $4 billion.

Trump pardoned CZ in October 2025. Following the pardon, Binance increased USD1-related promotions, including incentives on Binance.US. Zhao also announced a $1.8 billion donation aimed at supporting crypto adoption initiatives under the Trump administration.

In May 2025, just days after Binance listed USD1, the Securities and Exchange Commission dropped its lawsuit against Binance for alleged securities law violations.

Both Binance and World Liberty Financial deny any improper relationship. A World Liberty Financial spokesperson told Forbes that "any implication that Binance can exert control or influence over World Liberty Financial is patently false," comparing the Binance listing to consumer brands being "happy to have shelf space at Walmart."

A Binance spokesperson said its involvement with USD1 is "limited to standard listing, infrastructure, and market-access services that we provide to a wide range of projects on consistent terms."

On January 31, the Wall Street Journal reported Eric Trump reportedly signed a deal in January 2025 to sell 49% of World Liberty Financial to lieutenants of Sheikh Tahnoon bin Zayed Al Nahyan for $500 million. Tahnoon chairs MGX, the UAE-backed fund that used $2 billion worth of USD1 to invest in Binance.

Rep. Ro Khanna, D-Calif., launched an investigation into whether the deal influenced U.S. policies on AI chip exports to China, demanding World Liberty Financial turn over information on its $500 million deal with Tahnoon by March 1.

Conclusion

Binance's 87% control of USD1 supply represents an unprecedented concentration level among major stablecoins. The dominance resulted from strategic promotions, the $2 billion MGX investment, and Binance's conversion of BUSD backing assets into USD1. 

While both companies describe the relationship as standard business practice, the concentration creates theoretical risks around asset lockups and gives Binance leverage over World Liberty Financial. The regulatory history, pardon timing continue drawing scrutiny from analysts, former regulators, and congressional investigators. 

Resources

1. Report by Forbes: Binance—Whose Founder Was Pardoned—Now Holds 87% Of Trump’s Stablecoin

2. Announcement by Binance: Hold USD1 in Binance Spot, Funding, Margin and Futures to Share $40 Million Rewards in WLFI

3. Report by Forbes: MGX Cites ‘Compliance History’ In Picking Brand New Trump-Linked Stablecoin USD1 For $2 Billion Binance Deal

4. Announcement by Binance: Binance Encourages Users to Convert BUSD to Other Stablecoins Prior to February 2024

5. Report by Reuters: Inside the Trump family’s global crypto cash machine

6. Report by BBC: Trump pardons Binance founder Changpeng Zhao

7. Report by CNBC: SEC drops Binance lawsuit, ending one of last remaining crypto enforcement actions

8. Report by WSJ: Top Democrat Launches Probe Into ‘Spy Sheikh’ Deal With Trump Company