Key Takeaways:

• Binance holds 87% ($4.7B) of the Trump-linked USD1 supply, an unusually high concentration.
• USD1 is issued by World Liberty Financial, tied to the Trump family, with Trump reporting $57.4M in earnings.
• Single-exchange dominance and GENIUS Act gaps may increase redemption and liquidity risks.

Binance, the world’s largest cryptocurrency exchange by 24-hour trading volume, currently holds about 87% of the USD1 stablecoin’s circulating supply, valued at roughly $4.7 billion out of a total $5.4 billion. This stablecoin comes from World Liberty Financial, a crypto project connected to President Donald Trump and his family. 

The high concentration has sparked discussions on risks, especially after Trump pardoned Binance’s founder, Changpeng Zhao (CZ), in October 2025. Data from blockchain analytics firm Arkham Intelligence highlights this dominance, which exceeds that of other major stablecoins at any single exchange.

What is USD1 and its connection to Trump?

USD1 is a stablecoin backed by real US dollars or similar assets like government bonds, and is issued by World Liberty Financial, which launched in September 2024. The project lists Trump as co-founder emeritus, with his sons Donald Jr., Eric, and Barron also involved as co-founders. 

A Limited Liability Company (LLC) affiliated with Trump owns around 38% of World Liberty Financial, which reportedly added around $1 billion to his net worth. Trump reported earning $57.4 million from it in his financial disclosure for the year ending December 2024. The stablecoin’s reserves are invested in US Treasurys, generating interest that benefits the issuers.

Binance’s role and the pardon timeline

Binance’s grip on USD1 grew through key moves starting in 2025. In May 2025, the US Securities and Exchange Commission ended its lawsuit against Binance shortly after the exchange listed USD1. That same month, Abu Dhabi fund MGX used $2 billion in USD1 to invest in Binance, placing reserves there. 

By December 2025, Binance shifted assets from its old stablecoin, BUSD, into USD1. In late January 2026, Binance ran a promotion giving $40 million in World Liberty Financial’s WLFI tokens to USD1 holders, and received tokens directly from the crypto venture (for the promotion). 

These steps embedded USD1 deeply in Binance’s system, mostly for non-US users, as the exchange is barred from serving Americans under a 2023 settlement. Trump pardoned Zhao in October 2025, calling it a fix for an injustice, per Zhao’s attorney. CZ had pleaded guilty to anti-money laundering failures earlier in 2023,. Binance denies any link between the pardon and its USD1 support.

Risks from high concentration and regulatory gaps

Experts warn that Binance’s 87% control over USD1 creates vulnerabilities. Crypto researcher Molly White noted this gives the exchange leverage over World Liberty Financial, with risks like potential asset locks during legal troubles. 

Former SEC adviser Corey Frayer raised concerns about transparency and the separation of exchange and customer funds. Such setups could harm USD1’s redemption and price stability during market stress, unlike stablecoins that are more spread-out among various exchanges.

World Liberty Financial spokesperson David Wachsman countered that Binance’s role is like a retailer’s shelf space, with no undue influence. Binance emphasized that USD1 association is a part of its standard services and comes with the same risk controls as its other stablecoin listings.

In 2025, the US passed the GENIUS Act, the first federal law creating a framework for stablecoins. The law requires these stablecoins to back each unit with dollar-equivalent assets but does not set rules on how those assets must be spread across different platforms, per Brookings analysis. Brookings is a Washington DC-based non-profit and nonpartisan research organization.

This omission raises risks in cases like USD1, where most of the supply currently sits on one exchange (Binance) without mandatory diversification.