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CZ Says Binance Users Hold the Largest Share of Stablecoins

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CZ Says Binance Users Hold the Largest Share of Stablecoins

What to Know

  • CZ said Binance users hold the largest share of major stablecoins like USDT, USDC, and USD1 among all centralized exchanges.
  • Data shows the exchange custodies about 87-89% of USD1’s total supply, boosted by yield and reward programs.
  • CZ says it only provides listing and custody services, while critics warn about high concentration risk.

Donald Trump and his family’s WLFI are very popular on crypto Twitter; however, when reports of Binance holding the highest concentration of USD1 came out, Crypto Twitter started buzzing. The number of theories and allegations due to the exchange’s high number of USD1 stablecoin holdings and its link to WLFI, the noise and FUD became unstoppable.

Binance founder CZ has said that Binance users hold the largest share of most major stablecoins compared to users on other centralized exchanges. In a recent social media post, CZ wrote that the exchange’s users lead in holdings across stablecoins like USDT, USDC, USD1 and others, adding, “you name it.” He also described this as “not news,” suggesting this trend has been visible for some time. His comment confirms what data shows, Binance holds a very large share of one fast-growing stablecoin in particular, USD1.

Binance’s Large Stablecoin Footprint

According to blockchain analytics platform Arkham, Binance currently custodies about 87-89% of the circulating supply of USD1. That equals roughly $4.7 billion worth of tokens sitting in Binance-managed wallets and user accounts.

A Forbes report also claimed that CZ received a pardon in his ongoing cases in the United States. Questions about it being a play by Trump to get his family’s issued stablecoin on the most used global crypto exchange were also raised.

USD1 is issued by World Liberty Financial and is backed by the US president’s family. Data shows USD1 has about $5.4 billion in circulation and has grown more than 50% in the past month, making it the fifth-largest stablecoin by supply. The exchange clarified that custody does not mean ownership.

“Liquidity follows user demand and we work hard to meet demand and serve our users,” said Jessica Jung from Binance’s global PR team. In the interview with DLNews, she also added, “Our involvement with World Liberty Finance related products, including USD1, is limited to standard listing, infrastructure, and market-access services.”

USD1 Growth

Part of USD1’s rapid growth has been driven by Binance-led campaigns. In December, Binance launched a program offering up to 20% yield on USD1 holdings up to $50,000. In January, they also promoted USD1 through a $40 million WLFI token airdrop, encouraging users to hold and trade the stablecoin. USD1 says its value is backed by US government bonds, dollar deposits, and other cash-like reserves.

Co-founder Folkman previously said, “We believe the best path to broader adoption, including everyday transactions, is to establish USD1 as the preferred stablecoin for major institutions, enterprises, and consumers, too.” Still, analysts note that no other major stablecoin has such a high percentage parked on a single exchange, which highlights Binance’s central role in USD1’s liquidity and distribution.

Political Debate

USD1’s rise has also brought political criticism. Some US lawmakers have questioned the president’s family’s involvement in crypto ventures and raised conflict-of-interest concerns. A past investigation also examined a $2 billion investment deal involving Binance and Abu Dhabi’s MGX that used USD1.

Critics suggested possible links between that deal and a later presidential pardon for CZ. Binance CEO Richard Teng and CZ’s legal team have denied any connection. The White House has also rejected wrongdoing claims, stating that the president’s assets are held in a family trust. So far, no regulator has announced formal findings of misconduct related to USD1’s concentration on any exchange.

CZ on Token Listings

In a separate discussion today about whether exchanges should stop listing low-quality meme coins, CZ defended broad listings. He wrote, “It’s good for decentralized exchanges to list all tokens so why is it bad for centralized exchanges to do the same? I believe exchanges should provide all possible trading channels.” He added that each exchange has its own listing rules and that those rules can change over time.

Meanwhile, BNB is seeing good movement compared to the overall market. At the time of writing, BNB trades near $627.24, up about 1.5% over the past 24 hours. The broader crypto market has been mostly flat. Market watchers say the small rise is mainly due to money rotating into Binance ecosystem tokens, which slightly outperformed other sectors. Technical levels show near-term resistance around $636 and support near $622, with momentum still neutral.

What It Means?

CZ’s claim that Binance users hold the largest share of major stablecoins reinforces Binance’s position as the main hub for stablecoin trading activity. Supporters say this improves liquidity and efficiency. Critics warn that heavy concentration on a single platform can increase risk if disruptions occur.

For now, user demand and Binance’s strong incentive programs appear to be the main drivers behind the growing stablecoin balances on the exchange.

Also Read: Bitcoin’s Sharpe Ratio Hits Bear Market Exhaustion Zone


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