Here's a fun fact that should probably make everyone a bit uncomfortable: Binance (BNB), the world's largest cryptocurrency exchange, controls 87% of the entire supply of USD1—the stablecoin issued by World Liberty Financial, the Trump family's cryptocurrency venture.

When Concentration Becomes Concerning

The numbers are pretty stark. Binance holds $4.7 billion of USD1's $5.4 billion total supply, according to blockchain analytics firm Arkham Intelligence. That's the highest concentration of any third-party exchange among the top 10 stablecoins by market capitalization.

For perspective, Binance only holds about 10% of Tether (USDT), the world's dominant stablecoin, and 12.37% of USDC (USDC). So this 87% figure isn't just unusual—it's wildly out of proportion with normal market patterns.

There's an additional wrinkle worth noting: Binance's 2023 settlement with the Treasury Department explicitly bars it from serving American customers. So that 87% sitting in Binance-controlled wallets would mostly represent customers outside the United States.

Neither Binance nor World Liberty Financial responded to requests for comment on the concentration.

USD1's Rapid Ascent

USD1, designed to maintain a 1:1 peg with the U.S. dollar, has climbed to become the fourth-largest stablecoin by market capitalization. It's already surpassed PayPal USD and Dai—no small feat for a relatively new entrant.

The stablecoin got a major boost when Abu Dhabi investment firm MGX chose it to settle a $2 billion deal with Binance last year. That transaction caught the attention of Senator Elizabeth Warren (D-Mass.), who alleged a potential quid pro quo between the Trump family and Changpeng "CZ" Zhao, Binance's former CEO who was later pardoned by President Donald Trump.

CZ has repeatedly pushed back on these allegations, insisting the deal was simply a transaction payment—not an investment in World Liberty Financial. At the World Economic Forum in Davos, he mentioned that Binance's U.S. affiliate is preparing for a comeback.

Worth noting: although CZ is barred from operational involvement under a 2023 plea agreement related to anti-money laundering failures, he remains a controlling shareholder and influential figure at Binance.