Binance’s Role in USD1 Stablecoin for Trump’s WLF Amid Zhao Pardon
Bloomberg reveals Binance developed the initial smart contract and funded the USD1 stablecoin for Trump-linked World Liberty Financial, facilitating a $2B issuance. Onchain data shows over 90% of USD1 stablecoin supply is held in Binance-controlled wallets, potentially generating $30M in annual interest for the Trump family. CEO Changpeng Zhao filed for a presidential pardon in 2024 following his 2023 guilty plea, a move critics link to the stablecoin project. Binance insists the USD1 stablecoin met its standard listing criteria and denies any special deal, while World Liberty Financial rejects unethical ties. Ethics experts warn of a conflict, given President Trump’s sole pardon authority and his crypto ventures’ recent $620M fortune boost. Traders should monitor potential regulatory shifts, reputational risks to Binance, and possible stablecoin market effects as calls intensify for stricter oversight and greater transparency in politically linked crypto projects.
Neutral
The disclosure of political ties and potential conflicts of interest around the USD1 stablecoin and Binance may heighten regulatory scrutiny and dampen trader confidence in this specific stablecoin project. In the short term, uncertainty could slow USD1 adoption and redemption activity, but broader stablecoin markets and the $1 peg are unlikely to be directly impacted. Over the long term, intensified calls for compliance and transparency could reshape stablecoin governance standards without immediately destabilizing market stability.