Binance Controls Majority of USD1 Stablecoin Tied to Trump Family: Report

TLDR

• Binance holds $4.7B of USD1, or nearly 87% of its total supply.
• USD1 is linked to Trump, with a family LLC owning 38% of the issuer.
• Promotions on Binance boosted USD1 trading and user holdings.
• MGX invested $2B in Binance using USD1, increasing its reserves.

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Binance holds nearly 87% of the total supply of USD1, a stablecoin tied to Donald Trump and his family. The stablecoin’s rapid growth has been driven by major promotions and large transactions involving Binance, raising concerns about centralization and transparency.

Binance Holds Majority of USD1 Stablecoin Supply

Binance currently holds about 87% of all USD1 tokens in circulation, amounting to around $4.7 billion of the stablecoin’s $5.4 billion supply. The information comes from Arkham Intelligence data reviewed by Forbes.

USD1 is issued by World Liberty Financial, a crypto firm launched in 2024. The company is linked to Donald Trump, who is listed as co-founder emeritus. An LLC affiliated with Trump and his family owns about 38% of the firm and 22.5 billion WLFI tokens.

Binance became a central hub for USD1’s growth through promotional campaigns and strategic integrations. In January, Binance announced that USD1 holders would receive $40 million worth of WLFI, World Liberty Financial’s native token. Two days later, $40 million in WLFI was transferred to Binance.

The offer boosted USD1’s trading volume and encouraged users to keep the token on the platform. World Liberty Financial COO Zak Folkman called the attention from the crypto exchange rare, posting on X that it was unusual for Binance to promote a specific project.

Abu Dhabi-Backed Deal Increases Ties with Binance

In May 2025, MGX, a fund supported by the Abu Dhabi government, invested $2 billion in Binance using USD1. The deal moved a large amount of stablecoin reserves to the crypto exchange custody and increased yield for World Liberty Financial.

CEO Zach Witkoff said this use of USD1 boosted the token’s market cap, helping its visibility and adoption. Binance stated it did not control the fund’s choice of stablecoin. MGX said USD1 was chosen based on its backing assets and compliance.

In December, the crypto exchange also replaced assets backing its old BUSD token with USD1. World Liberty Financial said this move made USD1 part of Binance’s updated collateral system, further linking the token with the exchange.

Analysts Warn About Token Concentration

Independent crypto researcher Molly White said such high concentration on one exchange is unusual but not surprising. “There is at least theoretical risk,” she said, pointing to issues like bankruptcy, system failure, or legal freezes.

She added that the concentration could give the crypto exchange some leverage over World Liberty Financial. It remains unclear how much of the $4.7 billion in Binance wallets is held for customers or owned by Binance itself.

Former SEC adviser Corey Frayer said the lack of public information makes it difficult to know who controls the stablecoin’s supply. The crypto exchange responded that it follows risk management protocols and only offers standard listing services to USD1.

World Liberty Financial denied that Binance holds influence over its operations. Spokesperson David Wachsman compared Binance’s role to a store offering shelf space, saying the company also runs promotions on other exchanges.

Political and Regulatory Scrutiny Grows

USD1 has drawn attention due to its close ties to the Trump family. President Trump, Donald Jr., Eric, and Barron Trump are listed as co-founders. Trump reported $57.4 million in income from the project via the Donald J. Trump Revocable Trust.

The Trump Organization confirmed in 2024 that Trump maintains control of his business interests. Lawmakers are now reviewing World Liberty Financial’s international ties and its funding structure as part of ongoing oversight.

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