Binance now custodies about 89% of USD1, a Trump-linked stablecoin issued by World Liberty Financial. Data from Arkham and DefiLlama show USD1 rising roughly 50% over the past month, lifting it to the fifth-largest stablecoin by circulation. The token is dollar-pegged and backed by US government bonds and cash equivalents.
USD1 is the dollar-pegged token issued by World Liberty Financial, the crypto venture backed by the US president’s family, with $5.4 billion in circulation, DefiLlama data shows. “Liquidity follows user demand and we work hard to meet demand and serve our users,” Jessica Jung, a member of Binance’s global PR team, told DL News. To be sure, Binance’s custody of USD1 tokens does not mean the crypto exchange owns them. External custodial services are common in the finance industry. “Our involvement with World Liberty Financial–related products, including USD1, is limited to standard listing, infrastructure, and market-access services that we provide to a wide range of projects on consistent terms,” Jung said.
Binance CEO Richard Teng, and Zhao’s lawyer Teresa Goody Guillen, have both dismissed claims that the exchange helped boost USD1 before Zhao received the pardon. The White House has repeatedly dismissed allegations of any wrong-doing. “President Trump’s assets are in a trust managed by his children. There are no conflicts of interest,” Anna Kelly, the deputy press secretary, told DL News in January. USD1’s value is backed by US government bonds, dollar deposits and other cash equivalents.
In December, Binance launched a programme aimed at promoting the use of USD1. It offers up to 20% yield on USD1 holdings of up to $50,000. World Liberty Financial applied for a US banking license. “We believe the best path to broader adoption, including everyday transactions, is to establish USD1 as the preferred stablecoin for major institutions, enterprises, and consumers, too,” co-founder Zak Folkman told DL News at the time.
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