The latest news regarding USD1 (World Liberty Financial USD) revolves around its explosive growth and its high concentration on Binance. As of February 2026, USD1 has become a top-five stablecoin with a market cap of approximately $5.4 billion.
Why does Binance hold 87% of USD1?
Recent blockchain data (highlighted by Arkham and Forbes) shows that Binance custodies roughly $4.7 billion of the total supply. This isn't necessarily because Binance "owns" the tokens, but rather because of several strategic and promotional factors:
Binance has been running massive promotional campaigns, including a $40 million WLFI token airdrop for users who hold USD1 on the platform. These rewards (with yields as high as 16-20%) have incentivized users to move their USD1 from private wallets or other exchanges to Binance.
In late 2025, Binance officially converted its remaining BUSD collateral into USD1. This move embedded USD1 directly into the exchange's internal safety and collateral mechanisms.
Binance waived maker and taker fees for major USD1 pairs (like BTC/USD1 and ETH/USD1), making it the most cost-effective place for high-volume traders to use the stablecoin.
$USD1 is the native stablecoin of World Liberty Financial, a venture backed by the Trump family. Critics have noted that this deep integration followed Donald Trump’s pardon of Binance founder Changpeng Zhao (CZ) in late 2025, though Binance and World Liberty Financial maintain that their partnership is a standard commercial arrangement.
