Binance has accumulated over 87% of the USD1 stablecoin's trading volume.
The issuer of the asset is World Liberty Financial, which is associated with the Trump family.
Binance's participation does not imply ownership of the tokens, but gives the exchange influence over distribution.
Cryptocurrency exchange Binance holds about 87% of the total circulation of the USD1 stablecoin, according to data from analytics platform Arkham . According to them, Binance controls 4.69 billion USD1, while the total circulation of the asset is approximately 5.37 billion tokens.
USD1 is a stablecoin of the World Liberty Financial platform, which is associated with US President Donald Trump. The asset has risen to fifth place among stablecoins by market capitalization, according to DefiLlama .
In a comment to DLNews, Binance PR team representative Jessica Jang noted that liquidity is formed in accordance with user demand, and the company is making efforts to meet this demand and provide quality customer service.
“Holding USD1 tokens on Binance does not mean that the crypto exchange owns them. Using external custodian services is common practice in the financial industry. However, no other major stablecoin has such a high share placed on a single third-party exchange, highlighting Binance’s central role in the liquidity, distribution, and custody of the token,” DLNews said.
Comments from company representatives and experts
Independent crypto researcher Molly White, in a commentary for Forbes, noted that such concentration is atypical, but not particularly surprising. She added that there is at least a theoretical risk when a token is heavily concentrated on a single exchange, such as in the event of assets being frozen as part of a bankruptcy proceeding.
According to her, controlling 87% of USD1 stablecoins gives Binance some leverage over World Liberty Financial, especially considering that some of the tokens are presumably owned by the exchange itself, rather than held on behalf of customers.
World Liberty Financial representative David Waxman denied any possibility of Binance controlling or influencing the company. Binance noted that their participation in the USD1 project is limited to standard listing, infrastructure, and market access services.
Recall, earlier the media reported that Pakistan plans to integrate the USD1 stablecoin from World Liberty Financial.