World Liberty defends USD1 demand amid political scrutiny

World Liberty Financial has pushed back against claims that its USD1 stablecoin grew because of political connections, emphasizing that institutional demand is the primary driver of its more than $4 billion in circulation.

Institutional adoption fuels growth

CEO Zach Witkoff highlighted a $2 billion settlement by Abu‑Dhabi‑backed MGX for a Binance investment as a key early use case. The transaction, announced at TOKEN2049 in Dubai, gave USD1 an immediate institutional purpose shortly after its March 2025 launch.

Concentration on Binance raises questions

Data from February indicated that Binance‑controlled wallets held roughly $4.7 billion of USD1, about 87 % of the token’s supply at the time. Analysts warned that such concentration could create liquidity, governance and counter‑party risks, though circulation has since fallen below that peak.

Regulatory progress and pending approval

The Office of the Comptroller of the Currency (OCC) granted conditional, preliminary approval for a national trust bank charter tied to World Liberty on August 14. The proposed trust would issue and redeem USD1, manage reserves and provide custody services under federal supervision. Final approval requires additional capital, an updated operating plan and other conditions.

Political and foreign‑ownership scrutiny

Democratic lawmakers have noted that a Trump‑linked entity holds about 38 % of World Liberty’s holding company, and that an Abu‑Dhabi vehicle backed by UAE officials acquired a 49 % stake for $500 million. The OCC addressed foreign‑ownership concerns by treating non‑U.S. investors as passive shareholders, with voting rights limited to 9.9 %.

Market availability

Beyond Binance, USD1 is listed on U.S. exchanges such as Coinbase, Kraken and Crypto.com, as well as on Bybit, OKX, Bitget, Gate, KuCoin, MEXC and decentralized platforms like Uniswap and PancakeSwap. Promotional programs, including a $40 million WLFI token giveaway by Binance, have been used to boost adoption.