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CZ Defends Binance After Forbes Flags 87% Holdings in Trump’s USD1 Stablecoin

Published by
Zafar Naik and Qadir AK

Binance co-founder CZ hit back at a Forbes report claiming Binance holds around 87% of all USD1 in circulation. That’s roughly $4.7 billion out of the $5.4 billion total supply of the Trump-linked stablecoin issued by World Liberty Financial

The scrutiny follows Trump’s pardon of CZ in October 2025, after CZ pleaded guilty to anti-money laundering violations in 2023. Critics, including Senator Elizabeth Warren, have tied the pardon to Binance’s growing role in Trump-linked crypto ventures.

The pushback started when Satoshi Club’s X account called the Forbes article “just FUD” and said it “feels like an attack.” The community account reminded followers that these tokens belong to millions of users who choose to hold on Binance, not to the exchange itself.

CZ jumped in and said, “If you only count CEX holdings, you will see Binance is about 60-70% across the board.”

Other Stablecoins Show Similar Concentration

Data shared alongside the tweet backs up the argument. Ethena’s USDe sits at 77.48% on its own issuer platform. Sky Dollar is at 55.78% on Sky. USD1’s 87.36% on Binance is the highest, but high concentration at a single platform is common across top stablecoins.

That said, most of those tokens are concentrated at their own issuers. Binance is a third-party exchange for USD1, and that’s the distinction Forbes focused on.

What Forbes Reported

The Forbes article connected Binance’s USD1 holdings to several Trump-affiliated developments. MGX, a UAE state-backed fund, used $2 billion in USD1 to invest in Binance. A $40 million WLFI promotional airdrop currently rewards users who hold USD1 on the platform.

Binance also converted its old BUSD collateral into USD1, making the stablecoin a deeper part of its infrastructure.

One detail stood out: Binance US holds just $1,119 in USD1, suggesting the holdings are almost entirely from non-U.S. users.

What to Watch Next

The WLFI promotion ends on February 20. Whether USD1’s concentration at Binance drops after that will say a lot.

Rep. Ro Khanna has also set a March 1 deadline for World Liberty Financial to hand over records tied to its $500 million deal with UAE-linked entities.

FAQs

What could reduce USD1’s concentration on Binance next?

The WLFI airdrop ends Feb 20. If incentives stop, users may move USD1 off Binance, lowering its share over time.

Will regulators investigate Binance’s USD1 holdings?

Lawmakers are requesting records, but no formal probe is confirmed. Future action depends on disclosures and token movement data.

Could USD1 expand beyond Binance after promotions end?

Yes. Listings on other exchanges or DeFi platforms would naturally spread supply and reduce reliance on a single venue.

Zafar Naik and Qadir AK

Zafar is a seasoned crypto and blockchain news writer with four years of experience. Known for accuracy, in-depth analysis, and a clear, engaging style, Zafar actively participates in blockchain communities. Beyond writing, Zafar enjoys trading and exploring the latest trends in the crypto market.

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