Binance Developed Code for Trump-Backed USD1 Stablecoin Before CZ’s Pardon Bid

Binance, the world’s largest digital-asset exchange, played a critical role in developing the USD1 stablecoin launched by the Trump family’s World Liberty Financial Inc.

Key Takeaways:

• Binance developed the smart contract code for the Trump-backed USD1 stablecoin.
• Over 90% of USD1 tokens remain in Binance wallets, generating significant interest income for the Trump family.
• Binance founder Changpeng Zhao’s pardon bid raises concerns.

Binance wrote the smart contract code governing USD1, enabling the coin’s creation and use in a $2 billion transaction this spring, sources familiar with the matter told Bloomberg.

The assistance came despite Binance founder Changpeng Zhao’s 2023 guilty plea for failing to maintain an effective anti-money-laundering program and his subsequent public request for a presidential pardon.

The USD1 stablecoin, pegged to the U.S. dollar and backed by cash, Treasury bills, and repurchase agreements, was pivotal in a high-profile deal when UAE-based investment firm MGX used it to purchase a stake in Binance.

Blockchain data reveals that over 90% of USD1’s tokens, more than $2 billion, remain in Binance’s wallets, generating significant interest income potentially worth tens of millions annually for the Trump family.

Binance’s role went beyond code development. The exchange actively promoted USD1 to its 275 million users, a valuable advantage in the competitive stablecoin market.

However, neither Binance nor World Liberty has confirmed whether any payments were exchanged for Binance’s support.

A Binance spokesperson declined to comment on the coding assistance or the investment deal but affirmed that USD1 went through Binance’s standard listing process.

The spokesperson also noted that Zhao is no longer CEO and described his pardon application as a personal matter.

The connection between Zhao, who is seeking a pardon, and former President Donald Trump, who could grant it, has drawn criticism.

4. Sorry to disappoint. The WSJ article got the facts wrong.

More than 20 people have told me they were asked by the WSJ (and another media), "Can you confirm that CZ made some deal for a pardon?"

They probably asked hundreds of people to have 20 people reach out to me. In… https://t.co/ELyDPmKD3G

Legal experts highlight the unprecedented nature of a sitting president’s personal financial interests intersecting with official duties.

Trump’s family-backed crypto ventures have rapidly added hundreds of millions to their fortune, while regulatory enforcement against crypto firms eased during his administration.

Eric Trump attributed his family’s crypto interest to banking restrictions and the appeal of decentralization.

The collaboration between Binance and World Liberty reportedly began after Zhao met with Steve Witkoff, a Trump appointee and co-founder of World Liberty, shortly after Trump’s election win.

Despite public denials of this meeting, the relationship grew, leading to Binance’s involvement in the stablecoin’s launch and significant transactions.

USD1 aims to offer a stable digital dollar for faster, cheaper cross-border payments.

While stablecoins can be lucrative, earning billions in annual profits for issuers, concerns remain over regulatory scrutiny and potential misuse.

The Trump-backed stablecoin, however, has no known links to illicit activity and is managed with reserves overseen by VanEck and State Street.

Meanwhile, Donald Trump continues to capitalize on crypto market momentum.

According to financial disclosures released last Friday, the former president pulled in $58 million from crypto ventures in 2024, primarily through WLFI token sales.

That total trailed only his hospitality income and is expected to climb further in 2025 with an anticipated $390 million token sale and gains from his meme coin, launched in January.

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