Binance’s expanding role in the circulation of USD1 is drawing attention across the crypto industry, after new data showed the exchange controls most of the stablecoin’s supply.
Summary
- Binance holds about $4.7B of USD1 stablecoin, or nearly 87% of supply.
- The stablecoin is issued by Trump-affiliated World Liberty Financial.
- Analysts warn the concentration creates financial and governance risks.
The concentration is raising questions about risk, influence, and transparency around politically connected crypto projects.
A Feb. 10 Forbes report found that Binance holds about 87% of all USD1 in circulation. That equals roughly $4.7 billion out of the token’s $5.4 billion total supply, based on data from Arkham Intelligence. The figure includes funds in Binance-controlled wallets and assets held in user accounts on the platform.
USD1 is issued by World Liberty Financial (WLFI), a crypto venture linked to the Trump family. An LLC affiliated with President Donald Trump owns about 38% of the company. Forbes estimates the project has already added around $1 billion to Trump’s net worth.
Most major stablecoins are spread across multiple exchanges and wallets. USD1 stands out because such a large share sits on a single platform. Analysts say this level of concentration is rare among top stablecoins by market value.
How Binance became central to USD1’s growth
Blockchain data shows Binance’s share of USD1 has risen steadily since late 2025, driven in part by aggressive promotions and partnerships.
In late January, Binance announced that USD1 holders would receive $40 million worth of World Liberty Financial’s WLFI token. Two days later, the company transferred about $40 million in WLFI to Binance. The campaign boosted trading activity and encouraged users to hold USD1 on the platform.
Earlier, in May 2025, Abu Dhabi-backed fund MGX used $2 billion worth of USD1 to invest in Binance. That deal placed a large portion of the stablecoin’s reserves under Binance’s custody and increased interest income for World Liberty Financial.
In December, Binance also converted assets backing its former stablecoin, BUSD, into USD1. The company said the move made USD1 part of its updated collateral system, further integrating the token into its ecosystem.
Why concentration raises concerns
Despite helping USD1 grow quickly, these actions also made it more linked to Binance. The exchange claims its function is similar to that of other tokens, and that large platforms typically hold sizable stakes in specific assets.
There are risks associated with relying too much on one exchange, according to security researchers and analysts. Independent researcher Molly White told Forbes that high concentration can create problems if assets become frozen during legal disputes, technical failures, or financial stress.
It is also unclear how much of the $4.7 billion in Binance’s wallets belongs to the exchange and how much is owned by customers. Former SEC adviser Corey Frayer said the lack of transparency makes it harder to assess who controls the supply.
Regulatory history adds another layer of scrutiny. Binance stopped serving U.S. customers after a 2023 settlement with regulators. In 2025, the Securities and Exchange Commission dropped its lawsuit against the exchange shortly after it listed USD1. In October, President Trump pardoned former chief executive officer Changpeng Zhao.
Both Binance and World Liberty Financial deny any improper relationship. Company representatives say promotions and listings follow standard industry practices. Still, Binance’s U.S. affiliate holds only about $1,119 in USD1, suggesting most activity involves overseas users.
World Liberty Financial, launched in 2024, lists Trump and his sons as founders. An affiliated LLC owns 22.5 billion WLFI tokens and is entitled to 75% of token sale proceeds. Trump reported earning $57.4 million from the project in his latest disclosure.
Lawmakers have begun examining the company’s foreign ties and funding sources.
