Recent blockchain data has sparked intense debate across the digital asset industry as it reveals that Binance now controls the vast majority of the circulating supply of USD1, a stablecoin closely associated with World Liberty Financial (WLFI). According to a report from Forbes on Monday, the world’s largest cryptocurrency exchange holds approximately $4.7 billion in USD1, representing nearly 87% of the token’s $5.4 billion total supply. This level of concentration is considered an anomaly in the stablecoin market, where leading assets like USDT and USDC are typically distributed across a wide network of independent wallets and global exchanges.
The rapid consolidation of USD1 on Binance appears to be the result of a series of strategic integrations and high-value corporate deals occurring over the past year. In early 2025, the Abu Dhabi-backed fund MGX utilized $2 billion worth of USD1 to acquire a minority stake in Binance, immediately placing a significant portion of the stablecoin’s reserves under the exchange’s custody. More recently, in December 2025, Binance further integrated the asset by converting the remaining collateral from its defunct BUSD stablecoin into USD1. Aggressive promotional campaigns have also played a role; in late January, Binance launched a $40 million reward program, distributing WLFI governance tokens to users who hold USD1 on the platform, which significantly boosted on-chain activity.
The ties between the stablecoin and the current U.S. administration have added a layer of political scrutiny to these financial developments. USD1 is issued by World Liberty Financial, a venture founded by the Trump family, with an affiliated LLC owning a 38% stake in the company. Financial disclosures indicate the project has already contributed roughly $1 billion to President Donald Trump’s net worth. The relationship between the exchange and the project has faced additional questioning following President Trump’s October 2025 pardon of Binance founder Changpeng Zhao. While both Binance and World Liberty Financial maintain that their partnerships follow standard industry practices, the SEC recently dropped a long-standing lawsuit against the exchange shortly after it listed USD1.
Market analysts and security researchers warn that such extreme concentration creates significant systemic and governance risks. If a single entity controls nearly 90% of an asset, any technical failure, legal dispute, or financial stress at that exchange could effectively freeze the entire USD1 ecosystem. Furthermore, transparency remains a primary concern, as it is currently unclear what portion of the $4.7 billion held by Binance belongs to the exchange itself versus its individual customers. As USD1 continues to expand into decentralized lending and prediction markets, the industry remains focused on whether this centralized influence will hinder the stablecoin’s long-term stability and regulatory standing.
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