Binance retains 87% of Trump tokens despite prohibition on operations in the U.S., 2026/02/10 15:45:11

The largest cryptocurrency exchange by trading volume, Binance, retains approximately 87% of all circulating USD1 stablecoins from World Liberty Financial, a company associated with the family of U.S. President Donald Trump. This amounts to $4.7 billion out of a total of $5.4 billion in stablecoins, as calculated by analysts from Arkham.

It remains unclear how much of the $4.7 billion USD1 held in Binance wallets belongs to the exchange itself versus its clients. Nevertheless, experts from Arkham noted that such a concentration of assets is unprecedented among the top 10 stablecoins by market capitalization.

Independent crypto researcher Molly White remarked in an interview with Forbes that the concentration of USD1 on Binance is unusual, although not entirely surprising given the generous promotional activities. The analyst believes that a high concentration of a token on a single exchange poses a risk that assets could be frozen, for instance, in the event of the exchange’s bankruptcy. According to White, this situation grants Binance a certain level of influence over World Liberty Financial.

Former SEC advisor on cryptocurrency markets Corey Frayer suggested that the high concentration of the asset might indicate that USD1 was not originally intended to function as a full-fledged stablecoin, but rather as a means for the Trump family’s financial transactions. Notably, only $1,119 in USD1 is held on the U.S. subsidiary Binance.US. Frayer argues that this convincingly demonstrates that transactions involving the stablecoin are primarily conducted by foreign entities.

A representative from World Liberty Financial, David Wachsman, stated to the magazine that Binance does not exert influence over his company. Wachsman compared the listing of tokens to placing products on Walmart shelves: brands are pleased to have such exposure. The spokesperson assured reporters that World Liberty Financial has conducted promotional activities on other exchanges as well.

Binance informed the magazine that its interaction with USD1 is limited to standard services — listing, providing infrastructure, and market access. According to representatives of the platform, major exchanges often hold significant amounts of specific tokens. The company denies any connection between the pardon of exchange owner Changpeng Zhao and the large volumes of USD1.

At the end of January, World Liberty Financial transferred approximately $40 million in its own WLFI tokens to Binance. This occurred two days after the exchange announced a promotion: USD1 holders could receive WLFI as part of a special offer. However, under the terms of Binance’s agreement with the U.S. Department of the Treasury from 2023, the exchange is prohibited from servicing American clients. Thus, the majority of the 87% USD1 held in Binance wallets should belong to clients outside the United States.

In January 2025, U.S. President Donald Trump’s son, Eric Trump, signed an agreement with representatives of Sheikh Tahnoun bin Zayed Al Nahyan, head of the UAE’s investment funds. The sheikh acquired 49% of World Liberty Financial for $500 million, sources told The Wall Street Journal. Tahnoun also leads MGX — a fund that invested $2 billion in Binance USD1. U.S. Congressman Ro Khanna initiated an investigation to determine whether this deal influenced U.S. policy regarding the export of AI chips to China. Binance is registered in the Seychelles, and many of its owners and management are of Chinese origin.