Binance’s growing influence over USD1, a stablecoin linked to the Trump-backed World Liberty Financial, is drawing scrutiny after new data revealed the exchange controls the vast majority of the token in circulation.
According to a Forbes report published on February 10, Binance holds roughly 87% of USD1’s total supply, about $4.7 billion of the stablecoin’s $5.4 billion market value. The figure, based on Arkham Intelligence data, includes assets in Binance-controlled wallets as well as USD1 held by users on the platform.
Binance—Whose Founder Was Pardoned—Now Holds 87% Of Trump’s Stablecoinhttps://t.co/RjRApwN4qc pic.twitter.com/jE4JP6HS34
— Forbes (@Forbes) February 9, 2026
How Binance became central to USD1’s rise
In late January, Binance launched a campaign offering USD1 holders a share of $40 million worth of World Liberty Financial’s WLFI tokens. Shortly after, around $40 million in WLFI was transferred directly to Binance, boosting trading activity and encouraging users to keep USD1 on the exchange.
Earlier, in May 2025, Abu Dhabi-backed investment firm MGX used $2 billion worth of USD1 to invest in Binance. That transaction placed a significant portion of USD1’s reserves under Binance’s custody while generating interest income for World Liberty Financial.
Binance also deepened its ties to the stablecoin in December, when it converted assets backing its discontinued BUSD stablecoin into USD1. The exchange said the move integrated USD1 into its revamped collateral framework, further embedding the token into its ecosystem.
Why is this raising red flags?
Transparency is another concern. It remains unclear how much of the $4.7 billion in USD1 held on Binance belongs to the exchange itself versus customers. Former SEC adviser Corey Frayer said this lack of clarity makes it difficult to determine who truly controls the stablecoin’s supply.
Binance’s regulatory history adds to the scrutiny. The exchange exited the U.S. market following a 2023 settlement with regulators. In 2025, the SEC dropped its lawsuit against Binance shortly after the platform listed USD1. Later that year, Trump issued a pardon to former Binance CEO Changpeng Zhao. Notably, Binance’s U.S. affiliate reportedly holds just $1,119 in USD1, indicating most activity is driven by non-U.S. users.
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