Binance Holds the Bulk of Trump‑Linked Stablecoin

The biggest crypto exchange, Binance, now owns almost nine out of ten units of a stablecoin that is tied to former U. S. President Donald Trump and his family. The coin, called USD1, was created by a firm linked to the Trump clan and is meant to stay worth one U. S. dollar. Binance controls about $4. 7 billion of the $5. 4 billion total supply, which is an unprecedented concentration for any major stablecoin. This dominance didn’t happen quietly. It was built through public promotions, bulk transfers, and a chain of agreements that placed the token inside Binance’s own wallet system. Earlier this year, Binance announced it would swap its own BUSD reserves for USD1, making the new coin part of Binance’s collateral. A month later, the exchange ran a giveaway that offered $40 million worth of the coin’s governance token. Shortly after, almost exactly that amount was transferred to Binance from the issuer. Because so much of USD1 sits on one platform, analysts warn that a legal dispute or Binance’s own financial troubles could lock the token. The situation also gives Binance potential influence over the issuer, especially if some of the $4. 7 billion is held by Binance itself rather than by its customers.The Trump‑backed firm says the token’s growth is driven by its investment in U. S. Treasuries and money‑market instruments, which pay around 3. 6 % in interest. The owner’s stake—about 38 % of the firm—has already earned roughly $57 million for Trump in recent financial filings, with estimates that the project added about $1 billion to his net worth. Binance denies any special role beyond a normal exchange service. It says it simply lists and supports projects like USD1, just as any other token would be on its platform. The issuer echoes this, claiming the promotions are standard practice and that Binance has no control over its operations. The political backdrop is thick. Binance cannot serve U. S. customers because of a settlement with the Treasury, so most USD1 on its platform must belong to foreign users. A separate Abu Dhabi‑backed fund recently pledged $2 billion of USD1 to Binance, further tying the token’s reserves to the exchange. The U. S. House of Representatives has opened an inquiry into whether a sale of part of the firm’s ownership to UAE investors could have affected U. S. policy on AI chip exports. The real question remains: how much of the $4. 7 billion is owned by Binance versus its customers? That answer will be crucial once the current promotional push ends. Until then, Binance’s role as the central holder of a Trump‑linked stablecoin keeps regulators and watchdogs watching closely.