Trump Family-Linked Stablecoin Has 87% Of Its Supply Held By Binance, The Exchange Whose Founder CZ Was Pardoned By The President (UPDATED)

Core Insights - Binance holds $4.7 billion of the total $5.4 billion supply of the stablecoin USD1, representing the highest concentration on any third-party exchange among the top 10 stablecoins by market capitalization [2] - USD1 is now the fourth-largest stablecoin by market capitalization, designed to maintain a 1:1 peg with the U.S. dollar, surpassing PayPal USD and Dai [4] Group 1 - Binance's control over USD1 raises concerns about concentration risk, as it holds approximately 87% of USD1 in wallets controlled by the exchange [2][3] - The exchange's involvement with USD1 is described as limited to standard listing, infrastructure, and market-access services [3] - Binance's 2023 settlement with the Treasury Department prohibits it from serving American customers, indicating a strategic limitation in its operations [3] Group 2 - The stablecoin USD1 was utilized in a $2 billion deal between Abu Dhabi investment firm MGX and Binance, which has led to allegations of a potential quid pro quo involving the Trump family and Binance's former CEO [5] - Binance's CEO has denied allegations of impropriety, clarifying that the transaction was a payment rather than an investment in World Liberty Financial [6] - Binance's U.S. affiliate is reportedly preparing for a comeback, as stated by the CEO at the World Economic Forum [6]