Binance, the world's largest digital asset exchange, plays a crucial role in developing the $1 stablecoin launched by the Trump family's World Liberty Financial Inc.
Binance has written the smart contract governing USD1, allowing the creation and use of this currency in $2 billion worth of transactions this spring, sources close to the matter told Bloomberg.
This support comes despite Binance founder Changpeng Zhao pleading guilty in 2023 to failing to maintain an effective anti-money laundering program and subsequently publicly requesting a presidential pardon.
USD1 Stablecoin Drives $2 Billion UAE Investment Into Binance Stake
The $1 stablecoin, pegged to the US dollar and backed by cash, treasury bonds, and repurchase agreements, plays a key role in a prominent deal as the UAE-based investment firm MGX uses this currency to acquire stakes in Binance.
Blockchain data shows that over 90% of the USD1 token, equivalent to more than $2 billion, remains in Binance wallets, generating significant interest income potentially reaching tens of millions of dollars per year for the Trump family.
Binance's role goes beyond developing the code. This exchange has actively promoted USD1 to 275 million users, a valuable advantage in the highly competitive stablecoin market.
However, both Binance and World Liberty have not confirmed whether any payments were exchanged to receive support from Binance.
A spokesperson for Binance declined to comment on crypto support or investment agreements but confirmed that USD1 underwent Binance's standard listing process.
The spokesperson also noted that Zhao is no longer CEO and described his pardon request as a personal matter.
The connection between Zhao, who is seeking a pardon, and former President Donald Trump, who could grant it, has drawn significant criticism.
Legal experts emphasize the unprecedented nature of a sitting president's personal financial interests intersecting with official duties.
Cryptocurrency projects backed by the Trump family have quickly added hundreds of millions of dollars to their assets, while regulatory enforcement against cryptocurrency companies was relaxed during his administration.
Eric Trump believes his family's interest in cryptocurrency is due to banking restrictions and the appeal of decentralization.
The Relationship Between Binance And World Liberty Originates From CZ's Meeting With A Trump Appointee
The partnership between Binance and World Liberty is said to have begun after Zhao met Steve Witkoff, a Trump appointee and co-founder of World Liberty, shortly after Trump won the election.
Despite public denials of this meeting, the relationship continues to grow, leading to Binance's involvement in the launch process of this stablecoin and significant transactions.
USD1 aims to provide a stable digital dollar for faster and cheaper cross-border payments.
While stablecoins can be profitable, bringing billions of dollars in annual profits to the issuing entity, concerns remain about regulatory oversight and the potential for abuse.
However, this Trump-backed stablecoin is not related to illegal activities and is managed by reserves overseen by VanEck and State Street.
Meanwhile, Donald Trump continues to leverage the growth momentum of the cryptocurrency market.
According to financial reports released last Friday, the former president earned $58 million from cryptocurrency projects in 2024, primarily through the sale of WLFI tokens.
That total is only surpassed by his hotel service income and is expected to rise further in 2025 with projected token sales of $390 million and profits from his meme coin, launched in January. $BNB