Trump-Linked Stablecoin USD1 Floods Binance with Nearly $100M
A recent on-chain tracker has identified significant movement of Trump-linked USD1 into Binance. According to Onchain Lens, Fireblocks' custody wallet sent nearly $100 million in USD1 to the exchange between August 20 and 31. The tracker found that over a seven-day period, $66 million was transferred to Binance, with $28 million of that amount happening within 21 hours on August 25. Additionally, another $30 million was sent to Binance on August 31.
USD1 is the fifth-largest stablecoin, with a market cap of $4.17 billion and a gain of 4.1% over the past week. The stablecoin has been at the center of controversy due to its ties to President Donald Trump's business ventures, which raise conflict-of-interest concerns. Lawmakers have expressed concern about Binance's handling of USD1, given its majority ownership by Changpeng Zhao, who was pardoned by Trump last year.
The concentration of USD1 on Binance has significant implications for the global cryptocurrency market. The Bank for International Settlements (BIS) research shows that stablecoin flows can spill into traditional currency markets, and a 1% rise in net stablecoin inflows can widen the gap between buying dollars through stablecoins and spot foreign exchange by about 40 basis points.