Binance’s growing influence over the USD1 stablecoin is drawing fresh scrutiny after new data showed the exchange controls the vast majority of the token’s supply.
A Forbes report published on February 10 found that Binance holds about $4.7 billion worth of USD1, representing nearly 87% of the stablecoin’s total $5.4 billion supply, according to blockchain data from Arkham Intelligence. This figure includes both Binance-controlled wallets and USD1 held in user accounts on the exchange.
USD1 is issued by World Liberty Financial, a crypto venture linked to the Trump family. An LLC affiliated with U.S. President Donald Trump reportedly owns about 38% of the company, and Forbes estimates the project has already increased Trump’s net worth by roughly $1 billion.
Analysts say the level of concentration is unusual. Most major stablecoins are widely distributed across multiple exchanges, wallets, and protocols. By contrast, USD1’s supply is heavily centralized on a single platform, raising concerns about risk, influence, and transparency—especially given the project’s political connections.
How Binance became central to USD1
Blockchain data shows Binance’s share of USD1 has grown steadily since late 2025, driven by promotions and strategic integrations.
In late January, Binance announced that USD1 holders would receive $40 million worth of WLFI tokens, issued by World Liberty Financial. Shortly afterward, World Liberty transferred about $40 million in WLFI directly to Binance, boosting activity and encouraging users to keep USD1 on the exchange.
Earlier, in May 2025, Abu Dhabi–backed investment fund MGX used $2 billion in USD1 to invest in Binance. That transaction placed a large portion of USD1 reserves under Binance’s custody and generated interest income for World Liberty Financial.
Binance also deepened the relationship in December, when it converted collateral backing its former stablecoin BUSD into USD1. The exchange said USD1 was added to its updated collateral framework, further embedding the token into its ecosystem.
Why the concentration raises concerns
While these moves helped USD1 grow rapidly, analysts warn that relying so heavily on one exchange creates structural risks.
Security researchers point out that high concentration increases vulnerability if assets are frozen due to legal action, technical failures, or financial stress. Independent researcher Molly White told Forbes that such scenarios could severely disrupt USD1’s liquidity and user access.
Transparency is another issue. It remains unclear how much of the $4.7 billion held on Binance belongs to the exchange itself versus customers. Former SEC adviser Corey Frayer said this lack of clarity makes it difficult to assess who truly controls the stablecoin’s supply.
Binance’s regulatory history adds another layer of attention. The exchange exited the U.S. market after a 2023 settlement with regulators. In 2025, the SEC dropped its lawsuit against Binance shortly after the exchange listed USD1. Later that year, President Trump issued a pardon to former Binance CEO Changpeng Zhao.
Both Binance and World Liberty Financial deny any improper coordination, stating that listings and promotions follow standard industry practices. Notably, Binance’s U.S. affiliate reportedly holds just $1,119 in USD1, suggesting most activity occurs outside the United States.
World Liberty Financial, launched in 2024, lists Trump and his sons as founders. An affiliated LLC controls 22.5 billion WLFI tokens and is entitled to 75% of token sale proceeds. Trump disclosed $57.4 million in income from the project in his latest financial filing.
As USD1’s footprint grows, lawmakers have begun examining World Liberty Financial’s foreign ties, funding sources, and the implications of a politically linked stablecoin being so tightly concentrated on a single global exchange.
