Recently, the data platform Arkham Intel disclosed that Binance currently holds 87% of the USD1 stablecoin available on the market. Who issued USD1? It is called 'World Liberty Financial.'
And the interesting thing about this company is that it is a business under the Trump family, which holds 38% of its shares. Therefore, it is widely believed that USD1 can essentially be considered as a 'currency endorsed by the Trump family.'
What does it mean for Binance to hold 87%?
In the entire cryptocurrency market, this is a 'heaven-defying level' of concentration. Among the top ten stablecoins globally, the second place, Ethena USDe, has a concentration of 77.5%, and the third place, Ripple USD, has a concentration of only 35% on Aave. Binance has significantly raised the ceiling.
Additionally, Binance launched a promotion at the end of January—any user holding USD1 could receive an additional token, WLFI, issued by the same company, with a total value of $40 million. This operation has been interpreted by many as 'Binance helping the Trump family to gain momentum for their coin.'
Trump's 'pardon' of Zhao Changpeng is not something easily forgotten.
There is also a key detail that makes the significance of this event more subtle.
Binance founder Zhao Changpeng (CZ) admitted in 2023 that Binance's anti-money laundering system was non-compliant, resulting in a $4.3 billion fine from the U.S. government, and he served 4 months in prison.
However, by October 2025, things took another turn—Trump pardoned Zhao Changpeng after returning to office.
When this scene unfolded, the entire cryptocurrency community was astonished: from prison to a presidential pardon, this twist is no gentler than the candlestick chart of the crypto market.
And now, Binance has become the largest holder of the 'Trump family coin'—naturally leading to various speculations. Some believe this might be 'a favor returned,' while others say it's just a coincidental business opportunity.
The official stance from Binance is, of course, the latter; they emphasize that large exchanges holding significant amounts of specific tokens is actually a common phenomenon and has nothing to do with Trump's pardon. Zhao Changpeng's lawyer also refuted claims, stating that this pardon was based on considerations of judicial fairness. The White House press secretary was even more resolute: Trump was never involved in a conflict of interest.
Risk and imagination coexist: the 'too big to fail' version in the crypto world.
However, one risk highlighted by independent researcher Molly White is worth remembering:
When a token is overly concentrated in the hands of a single exchange, problems can also be magnified.
If that exchange encounters liquidity issues or even bankruptcy, the tokens in users' hands could be frozen at any time.
More subtly, in Binance's 87% holdings, some may not represent users but rather Binance's own holdings. In other words, Binance may be switching between the roles of 'half investor, half channel dealer.' This situation significantly tests trust.
Of course, the World Free Finance Company quickly stepped in to douse the flames, spokesperson David Wachsman stated: 'Binance has no influence over us, nor can it control company decisions.' They also added that they are promoting USD1 on other exchanges as well, not a project exclusive to Binance.
Summary: When the crypto world meets the political sphere, the story is never simple.
Binance holds 87% of USD1, marking an industry phenomenon of concentration, but the story behind it is even more intriguing.
When cryptocurrency gets caught in the whirlpool of politics, business, and connections, pure financial tools become extensions of power.
This incident is both a challenge to the 'decentralized ideal' and a reminder that in the fast-spinning world of cryptocurrency, political winds can also become market variables.
