Binance, recognized as the largest digital asset exchange globally, has been instrumental in the deployment of the USD1 stablecoin, an initiative backed by the Trump family’s World Liberty Financial Inc.
Key Points:
- Binance crafted the smart contract code that governs the Trump-supported USD1 stablecoin.
- Over 90% of USD1 tokens are held in Binance wallets, producing a notable revenue stream for the Trump family.
- Changpeng Zhao, the founder of Binance, is seeking a pardon, eliciting scrutiny regarding his past legal issues.
According to sources who spoke with Bloomberg, Binance developed the smart contract code essential for the creation of USD1, facilitating its use in a substantial $2 billion transaction earlier this spring. This collaboration occurred against the backdrop of Zhao’s guilty plea in 2023 for failing to enforce adequate anti-money laundering controls and his subsequent request for a pardon from the president.
USD1 Stablecoin Fuels $2 Billion Investment from UAE
The USD1 stablecoin, which is pegged to the U.S. dollar and supported by cash reserves, Treasury bills, and repurchase agreements, played a critical role in enabling the UAE-based investment firm MGX to acquire a stake in Binance.
Blockchain data indicates that more than 90% of USD1’s tokens, equivalent to over $2 billion, are maintained in Binance wallets, which likely generate substantial interest income for the Trump family—potentially reaching tens of millions of dollars each year.
Furthermore, Binance’s engagement extended beyond software development; the exchange actively promoted USD1 to its user base of 275 million, offering it a competitive edge in the saturated stablecoin arena.
Despite these contributions, neither Binance nor World Liberty has verified whether any form of payment was received for this support.
A spokesperson for Binance declined to elaborate on the coding assistance or the specifics of the investment partnership but confirmed that USD1 underwent the exchange’s standard listing procedures. They also noted that Zhao is no longer serving as CEO and characterized his request for a pardon as a personal issue.
The intertwining of Zhao’s pardon aspirations and former President Donald Trump’s potential influence has sparked criticism among legal experts, with concerns about the unconventional intersection of personal financial interests and presidential responsibilities.
While Trump’s family’s ventures into cryptocurrencies have reportedly enhanced their wealth by hundreds of millions, regulatory pressures on crypto enterprises softened during his presidency.
Eric Trump has attributed the family’s interest in crypto to the constraints of traditional banking and the allure of decentralized finance.
Origins of Binance and World Liberty Collaboration
The partnership between Binance and World Liberty reportedly solidified after Zhao met with Steve Witkoff, a Trump appointee and co-founder of World Liberty, shortly following Trump’s electoral victory.
Despite public assertions denying this meeting, their relationship flourished, leading to Binance’s substantial role in the stablecoin’s launch and larger transactions.
The aim of USD1 is to provide a stable digital dollar to streamline and reduce the costs associated with cross-border payments.
Although stablecoins present opportunities for significant profits, there remain apprehensions about regulatory oversight and the potential for misuse.
Nonetheless, the Trump-affiliated stablecoin has not been linked to any illicit activities and is administered with reserves managed by VanEck and State Street.
Amidst these developments, Donald Trump continues to leverage the burgeoning cryptocurrency market.
Recent financial disclosures reveal that the former president earned $58 million from crypto-related activities in 2024, primarily through WLFI token sales. This amount ranks just behind his income from hospitality and is projected to increase in 2025, with an anticipated $390 million from a forthcoming token sale and additional gains from a meme coin launched in January.
The report detailing Binance’s involvement in the development of the Trump-backed USD1 stablecoin was originally published by Finance Newso.
