Binance holds nearly 87% of the USD1 stablecoin supply: Forbes

Binance’s growing role in the circulation of USD1 is drawing attention in the crypto industry after new data showed the exchange controls the majority of the stablecoin supply.

The concentration raises questions about the risk, influence and transparency surrounding politically connected crypto projects.

A Forbes from February 10 report found that Binance owns approximately 87% of all USD1 in circulation. That equates to about $4.7 billion out of the token’s total $5.4 billion supply, based on data from Arkham Intelligence. The figure includes the funds in Binance-controlled wallets and assets in user accounts on the platform.

USD1 is issued by World Liberty Financial (WLFI), a crypto firm linked to the Trump family. An LLC affiliated with President Donald Trump owns about 38% of the company. Forbes estimates that the project has already added about $1 billion to Trump’s net worth.

Most major stablecoins are spread across multiple exchanges and wallets. USD1 stands out because such a large share is on one platform. Analysts say this level of concentration is rare among the top stablecoins by market value.

How Binance Became Central to USD1’s Growth

Blockchain data shows that Binance’s share of USD1 has risen steadily since late 2025, partly due to aggressive promotions and partnerships.

In late January, Binance announced that holders of USD1 would receive a WLFI token worth $40 million from World Liberty Financial. Two days later, the company transferred approximately $40 million worth of WLFI to Binance. The campaign boosted trading activity and encouraged users to hold USD1 on the platform.

Previously, in May 2025, Abu Dhabi-backed fund MGX used $2 billion of USD1 to invest in Binance. That deal placed a large portion of the stablecoin’s reserves under the custody of Binance and increased interest income for World Liberty Financial.

In December, Binance also converted assets backing its former stablecoin, BUSD, into USD1. The company said the move made USD1 part of its updated collateral system, further integrating the token into its ecosystem.

Why concentration raises concerns

Although USD1 was able to grow quickly, these actions also made it more linked to Binance. The exchange claims that its function is similar to that of other tokens, and that major platforms typically have significant stakes in specific assets.

According to security researchers and analysts, there are risks associated with being too dependent on one exchange. Independent researcher Molly White told Forbes that high concentration can cause problems if assets become frozen during legal disputes, technical glitches or financial stress.

It is also unclear how much of the $4.7 billion in Binance’s wallet belongs to the exchange and how much is owned by customers. Former SEC adviser Corey Frayer said the lack of transparency makes it harder to assess who controls the offering.

The regulatory history adds another layer of scrutiny. Binance stopped serving US customers after a 2023 settlement with regulators. In 2025, the Securities and Exchange Commission dropped its lawsuit against the exchange shortly after it listed USD1. In October, President Trump pardoned former CEO Changpeng Zhao.

Both Binance and World Liberty Financial deny any inappropriate relationship. Company representatives say promotions and listings follow standard industry practices. Yet Binance’s US affiliate only holds about $1,119 in USD1, suggesting that most of its activity involves foreign users.

World Liberty Financial, launched in 2024, lists Trump and his sons as founders. An affiliated LLC owns 22.5 billion WLFI tokens and is entitled to 75% of the token sale proceeds. Trump reported in his latest disclosure that he had made $57.4 million from the project.

Lawmakers have begun investigating the company’s foreign ties and sources of funding.