Last month, the dollar-pegged stablecoin created by the Trump family’s crypto firm, World Liberty Financial, reached an important milestone: the total circulation of USD1 exceeded $5 billion for the first time, ranking it among the world’s top cryptocurrencies, according to recent reporting by The New York Times. 

Yet 85% of all USD1 is held in accounts managed by Binance, a massive cryptocurrency exchange that is barred from operating within the United States due to allegations that it has turned a blind eye to illicit activity on its platform, the newspaper said. 

The relationship between World Liberty Financial and Binance has only grown since October, when President Trump pardoned the company’s founder Changpeng Zhao, who had previously served four months in prison after he and Binance pleaded guilty to money-laundering violations in 2023, the Times said. 

The pardon drew widespread criticism from critics of the White House, who were quick to point out how Trump’s conflicts of interest in pardoning Zhao, given his influence on U.S. regulatory policies and his new role as crypto mogul, the newspaper said. Trump has since voiced support for legislation that could pave the way for Binance to operate in the U.S. market. 

In recent months, Binance has eliminated fees for certain conversions into USD1 and offered yield-style rewards for holding the coin, including a $40 million rewards pool announced January 22. Global USD1 trading rose by nearly $2 billion over the following week, according to the report.

The relationship between Binance, World Liberty Financial, the Trump administration, and other foreign nationals has created opportunities for grift that are “mind-boggling,” two Democratic senators wrote in a letter to U.S. ethics officials last year. 

Read more at The New York Times