Binance users hold roughly 87 percent of USD1, the Trump-linked stablecoin, according to a Forbes report published on February 9, 2026. This places most of the token’s circulating supply on a single exchange, raising questions about concentration and potential risks.
Binance founder Changpeng “CZ” Zhao said the high concentration reflects user demand rather than political connections or preferential treatment. He emphasized that Binance users hold the largest share of nearly every major stablecoin, including USDT, USDC, and USD1, compared with other centralized exchanges.
Exchange Control and Public Scrutiny
The Forbes report, citing Arkham Intelligence, found Binance controls approximately $4.7 billion of USD1’s $5.4 billion supply. This includes both customer balances and wallets controlled by the exchange, although the exact breakdown remains unclear. USD1 was launched in March 2025 by World Liberty Financial, a venture with backing from members of former President Donald Trump’s family. CZ was among the first to publicly share news of the token. Trump is listed as co-founder emeritus, and affiliated entities are entitled to a significant portion of proceeds from the governance token, WLFI.
The custody concentration has drawn criticism. Independent researcher Molly White warned it creates “theoretical risk” if assets are tied up in legal or operational disputes. Corey Frayer, a former SEC adviser, questioned whether USD1 was intended as a broadly used stablecoin at all.
CZ Responds and Broader Context
Zhao responded on social media, highlighting that Binance users dominate holdings across most stablecoins, making the concentration unsurprising. The controversy around USD1 reflects broader scrutiny of Zhao and Binance, especially following the former CEO’s presidential pardon in October 2025 after pleading guilty in 2023 to compliance failures related to anti-money laundering controls. Zhao’s legal team emphasized that the case was regulatory and rejected claims of political favoritism.
Coordinated FUD and Market Reality
CZ and Binance executives describe the negative attention as part of a coordinated campaign of fear, uncertainty, and doubt. Earlier in the month, Zhao exposed a fake social media account with 863,000 followers that used AI-generated images of him to first pose as a supporter and then spread negative sentiment. A separate AI analysis reported what appeared to be a deliberate smear campaign against the exchange.
Market data suggests Binance’s dominance extends beyond USD1. A January CryptoQuant report showed the exchange captured 41 percent of spot trading volume and 42 percent of Bitcoin perpetual futures volume among top exchanges in 2025. Binance also held 72 percent of the combined USDT and USDC reserves on major platforms, supporting Zhao’s argument that large user holdings on the exchange are common and not unique to USD1.
