Binance Holds the Bulk of Trump‑Linked Stablecoin

Binance now holds nearly nine‑tenths of the entire supply of USD1, a stablecoin tied to former U.S. President Donald Trump and his family.
With $4.7 billion of the $5.4 billion total supply under its control, Binance’s stake is unprecedented for any major stablecoin.

How the Concentration Came About

Step	Action	Impact
1	Public promotions	Raised awareness and demand.
2	Bulk transfers	Concentrated holdings in Binance’s wallet system.
3	Chain of agreements	Embedded the token into Binance’s collateral framework.
4	BUSD swap announcement	Officially swapped Binance’s own BUSD reserves for USD1.
5	$40 million giveaway	Offered governance tokens, followed by a matching transfer from the issuer.

Risks of Concentration

Legal or financial turbulence at Binance could lock USD1, threatening liquidity.
Potential influence over the issuer if Binance holds funds directly rather than customer deposits.
Regulatory scrutiny intensified by Binance’s inability to serve U.S. customers and the presence of foreign holders.

Economic Drivers

The Trump‑backed firm invests in U.S. Treasuries and money‑market instruments, yielding ~3.6 % interest.
Trump’s stake (~38 %) has already generated ~$57 million, with the project adding ~$1 billion to his net worth.

Binance’s Position

Claims it is merely a listing platform, providing no special role beyond normal exchange services.
The issuer echoes that promotions are standard practice and Binance lacks operational control.

Political Context

Binance cannot serve U.S. customers due to a Treasury settlement; thus, most USD1 holdings are foreign.
An Abu Dhabi‑backed fund pledged $2 billion of USD1 to Binance, further entangling the token’s reserves.
The U.S. House of Representatives is investigating whether UAE investment in the firm may have influenced U.S. AI chip export policy.

The Core Question

How much of the $4.7 billion is owned by Binance versus its customers?
This answer will be pivotal once the current promotional activities conclude.

Until then, Binance’s role as the central holder of a Trump‑linked stablecoin keeps regulators and watchdogs watching closely.