Binance holds nearly 87% of WLFI's USD1 stablecoin, Forbes reports

Binance holds approximately 87% of the circulating supply of the USD1 stablecoin issued by World Liberty Financial (WLFI), a concentration that suggests a close relationship between the two entities, Forbes has pointed out. According to data from Arkham, Binance holds about $4.7 billion of the total $5.4 billion in circulating USD1. This represents a much higher stake than the exchange holds in other major stablecoins. Crypto researcher Molly White stated that when a specific token is concentrated on a single exchange, it creates risks, such as the potential for the exchange to exert influence over the project. She added that it is highly likely a portion of the 87% is held directly by Binance, rather than just on behalf of its customers. Previously, Binance founder Changpeng Zhao pleaded guilty in 2023 to failures in operating an anti-money laundering (AML) program and was sentenced to four months in prison, but he was pardoned by President Donald Trump last year.