Binance co-founder Changpeng Zhao (CZ) pushed back sharply against a Forbes report claiming the exchange holds roughly 87% of all USD1 in circulation — about $4.7 billion out of a total supply of $5.4 billion. In a social media post, CZ argued: “If you only count CEX holdings, you will see Binance is about 60-70% across the board.” He downplayed the notion that USD1’s concentration is uniquely alarming.
CZ Counters: High Concentration Is Industry Standard
The dispute erupted after Forbes tied Binance’s USD1 holdings to Trump’s pardon of CZ in October 2025, and Senator Elizabeth Warren linked the pardon to Binance’s deepening role in Trump-affiliated crypto ventures. CZ’s response echoed Satoshi Club’s characterization of the report as “just FUD,” emphasizing that the tokens belong to millions of users, not to Binance itself. Data shared alongside his tweet showed Ethena's USDe concentrated at 77.48% on its own issuer platform, and Sky Dollar at 55.78% on Sky. While USD1’s 87.36% on Binance is the highest, high single-platform concentration is common among top stablecoins. The key difference: most stablecoins cluster at their own issuers, whereas Binance is a third-party exchange for USD1 — a distinction Forbes highlighted.
Political & Market Context Behind the Numbers
Forbes detailed several Trump-linked developments: UAE state-backed fund MGX used $2 billion in USD1 to invest in Binance; a $40 million WLFI promotional airdrop currently rewards USD1 holders on the platform; Binance also converted its old BUSD collateral into USD1. Notably, Binance US holds just $1,119 in USD1, suggesting holdings are almost entirely non-U.S. user driven. Rep. Ro Khanna has set a March 1 deadline for World Liberty Financial to provide records tied to its $500 million deal with UAE-linked entities.
Key Dates: WLFI Promotion Ends, Congressional Deadline Looms
The WLFI promotion expires on February 20. If incentives stop, users may move USD1 off Binance, lowering its concentration. Market watchers will closely track post-promotion on-chain movements. Meanwhile, Khanna’s record request approaches, potentially triggering formal inquiries. The entire episode underscores how stablecoin concentration becomes politically charged when tied to a political figure’s family business. Whether USD1 spreads to other venues after the promotion ends will be the real test of its decentralization.