Key Highlights
- Binance controls 87% of USD1, linking it closely to Trump’s crypto venture and boosting his wealth by roughly $1B.
- MGX’s $2B USD1 investment and Binance’s BUSD conversion strengthened USD1’s market cap and central role on the exchange.
- $WLFI crashed 66% while USD1’s high Binance concentration poses risk, prompting scrutiny over foreign influence and national security.
World’s largest exchange Binance now controls roughly 87% of USD1, the stablecoin linked to a Donald Trump family crypto venture. This concentration surpasses any major stablecoin held at a single exchange. Between its own wallets and users’ accounts, Binance holds around $4.7 billion of USD1’s $5.4 billion supply.
This shows how closely Binance and Trump’s crypto venture, World Liberty Financial, are connected. Binance’s control of USD1 has helped add roughly $1 billion to Trump’s wealth. As per Arkham Intel data, no other major stablecoin is concentrated so heavily at a single exchange.
USD1 became more noticeable on Binance after the exchange offered $40 million in $WLFI rewards to people holding the stablecoin. Soon after, World Liberty Financial moved the same amount of $WLFI to Binance. Since Binance isn’t allowed to serve U.S. customers under its 2023 Treasury settlement, most of USD1 is probably held for users outside the U.S. This setup shows how central Binance is to USD1’s ecosystem.
Binance’s role and Trump connection
Binance shared that it handles USD1 the same way it does with other cryptocurrencies. A spokesperson told Forbes, ‘‘It is not uncommon for large exchanges to hold large amounts of certain tokens.’’
However, given that President Donald Trump pardoned Changpeng Zhao, this association has raised eyebrows. World Liberty Financial called its promotions ‘standard practice’ and denied that Binance had any influence over the company. Zhao’s attorney said the pardon corrected an injustice. At the same time, White House press secretary Karoline Leavitt emphasized that Trump avoids conflicts of interest.
Experts note the concentration is unusual. Researcher Molly White commented, “There is at least theoretical risk when a token is highly concentrated at one exchange.” Concentration could give Binance leverage over World Liberty Financial.
Still, the company insisted the listing is akin to brands having shelf space in major stores. Binance added, “We employ robust risk management measures to provide a secure trading environment.”
Funding and corporate structure
A Trump-linked LLC owns 38% of World Liberty Financial and 22.5 billion $WLFI tokens, taking 75% of all $WLFI sales. In 2024, Trump reported earning $57.4 million from the company.
USD1, the stablecoin launched in March 2025, is designed to be redeemable 1-to-1 with U.S. dollars and is backed by U.S. Treasurys and money market assets that earn around 3.6% interest.
In May, MGX, which is a fund based in Abu Dhabi, decided to invest USD1 in Binance to a tune of $2 billion, leading to an increase in the interest earnings of World Liberty Financial. Subsequently, in December 2025, Binance was able to transform its BUSD holdings to USD1. These actions for USD1 increased its market cap.
Despite the progress, the government is investigating after a member of the UAE royal family secretly invested $500 million in the World Liberty Financial Company. The government has been probing whether the deal affected the policies of the United States, was tainted by conflicts of interest, or affected national security.
Sources claim that the royal family through Tahnoon signed an agreement in January 2025 to buy a 49% stake in the WLFI just before the inauguration of President-elect Trump.
Market trends and token performance
The $WLFI token recently hit a low of $0.09831, falling 66% from its all-time high. While USD1 remains relatively stable thanks to its backing, the fact that so much is held on Binance adds risk. Bitcoin (BTC) bounced from the low $60,000s to $69,660, down 2% in a day, and Ethereum (ETH) trades at $2,063, down 1%, as per data from CoinMarketCap. The $WLFI rewards linked to USD1 likely fueled speculative trading, showing opportunities and caution for investors.
Former Securities and Exchange Commission Senior Advisor Corey Frayer warned that USD1’s concentration suggests it may not have been intended as a true stablecoin. Binance’s U.S. affiliate holds just $1,119 of USD1, indicating foreign entities dominate the exchange’s stablecoin activity.
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