In a development raising significant concerns about centralization and risk in the stablecoin sector, cryptocurrency exchange Binance now controls approximately 87% of the total circulating supply of USD1, a stablecoin linked to the Trump family. According to a Forbes report citing data from Arkham Intelligence, Binance holds roughly $4.7 billion of the token's $5.4 billion total supply, marking the highest concentration of any major stablecoin on a single exchange.
The USD1 stablecoin is issued by World Liberty Financial (WLFI), a crypto venture with direct ties to the Trump family. An LLC affiliated with former President Donald Trump owns about 38% of the company, and Forbes estimates the project has added around $1 billion to Trump's net worth. Trump reported earning $57.4 million from the project in his latest financial disclosure.
Binance's growing dominance over USD1 has been driven by a series of strategic moves. In late January 2026, Binance launched a promotion offering USD1 holders $40 million worth of WLFI tokens, which was followed two days later by a transfer of $40 million in WLFI tokens to the exchange. Earlier, in May 2025, Abu Dhabi-backed fund MGX used $2 billion worth of USD1 to invest in Binance, placing a large portion of the stablecoin's reserves under the exchange's custody. Furthermore, in December 2025, Binance converted assets backing its former stablecoin, BUSD, into USD1, integrating the token into its updated collateral system.
This extreme concentration raises serious financial, governance, and security concerns. Analysts and researchers warn that having nearly 90% of a token's supply on one platform creates a single point of failure. Independent researcher Molly White highlighted risks if assets become frozen during legal disputes, technical failures, or financial stress. The lack of transparency—it's unclear how much of the $4.7 billion belongs to Binance versus its customers—complicates risk assessment, a point emphasized by former SEC adviser Corey Frayer.
The situation is further complicated by the regulatory history of the involved parties. Binance ceased serving U.S. customers after a 2023 settlement with regulators. Notably, the U.S. Securities and Exchange Commission (SEC) dropped its lawsuit against Binance in 2025 shortly after the exchange listed USD1. In October 2025, President Trump pardoned former Binance CEO Changpeng Zhao. Both Binance and World Liberty Financial deny any improper relationship, stating promotions and listings follow standard industry practices.
