World Liberty Financial has defended the demand behind its USD1 stablecoin after circulation surpassed $4 billion, rejecting claims that the token’s growth depends on the Trump family’s political connections.
Summary
- USD1 circulation has exceeded $4 billion since the stablecoin launched in March 2025.
- World Liberty CEO Zach Witkoff said institutional demand, rather than political access, drove its growth.
- MGX used $2 billion in USD1 to complete an investment in Binance.
- The OCC has conditionally approved a national trust bank charter tied to World Liberty.
World Liberty credits USD1 demand to institutional use
CNBC reported on Aug. 25 that World Liberty Financial CEO Zach Witkoff pointed to USD1’s adoption as evidence that the stablecoin has grown on its own merits rather than through favorable treatment from President Donald Trump’s administration.
With more than $4 billion in circulation, USD1 has become one of the largest dollar-pegged cryptocurrencies since its March 2025 launch. World Liberty says the token is backed by U.S. dollars held at financial institutions, U.S. government money market funds, and other cash equivalents.
“USD1 grew because institutions trust how it operates, and confidence at enterprise scale deserves the backing of federal supervision,” Witkoff said in a statement issued after the company received preliminary approval for a national trust bank.
One transaction accounts for a substantial part of USD1’s early adoption. In May 2025, Abu Dhabi-backed investment company MGX selected the stablecoin to settle its $2 billion investment in Binance, the world’s largest crypto exchange by trading volume.
Zach Witkoff announced the arrangement at the TOKEN2049 conference in Dubai, where he described USD1 as the “official stablecoin” for the deal. MGX had disclosed the Binance investment in March but did not initially identify the asset that would be used for settlement.
The transaction gave USD1 an immediate institutional use case shortly after its introduction. However, the involvement of MGX, Binance, and the Trump-linked company also became a focus for Democratic lawmakers examining foreign financial interests connected to World Liberty.
Binance deal helped USD1 reach the top stablecoin ranks
Although World Liberty cites the MGX transaction as evidence of market adoption, the token’s concentration on Binance has prompted questions about how widely that demand is distributed.
A February Forbes report based on Arkham Intelligence data found that Binance-controlled wallets and customer accounts held around $4.7 billion in USD1 at the time, representing nearly 87% of its $5.4 billion supply. As crypto.news previously reported, analysts cited in that report said the concentration could create liquidity, governance, and counterparty risks.
USD1 circulation has since fallen from the level cited in February, though World Liberty’s latest disclosure places the total above $4 billion. Stablecoin supply can rise or fall as authorized participants mint tokens or redeem them for the assets backing them.
Beyond Binance, World Liberty lists USD1 on U.S.-accessible exchanges including Coinbase, Kraken and Crypto.com. The token is also available through Bybit, OKX, Bitget, Gate, KuCoin, and MEXC, along with decentralized exchanges such as Uniswap and PancakeSwap.
World Liberty has deployed USD1 across several blockchain networks to support payments, trading and settlement. Its exchange availability, however, does not by itself show how much supply or trading activity is spread beyond Binance.
The company has also used promotional programs to increase adoption. Binance announced a campaign in January that offered $40 million worth of WLFI tokens to eligible USD1 holders, followed by a transfer of roughly $40 million in WLFI from the project to the exchange.
USD1 bank still requires final OCC authorization
Regulatory access has become another part of the debate after the Office of the Comptroller of the Currency granted preliminary conditional approval to World Liberty Trust Company on Aug. 14.
World Liberty submitted the application through WLTC Holdings LLC in January. Under the proposed structure, the trust company would directly issue and redeem USD1, manage its reserves, and provide digital asset custody services to institutional customers.
BitGo currently performs the issuance, redemption, and reserve custody functions. Moving the operations to World Liberty Trust would bring them under one federally supervised entity if the OCC grants final authorization.
Preliminary approval does not permit the trust company to begin operating. The OCC approval conditions require World Liberty Trust to maintain at least $20 million in eligible capital, submit an updated operating plan, and appoint a qualified internal audit manager.
The proposed entity would operate as a national trust bank rather than a conventional commercial bank. It would not accept standard retail deposits, provide checking accounts, or issue loans. Its permitted activities would focus on custody, reserve management, stablecoin settlement, and other fiduciary services.
World Liberty would also need OCC clearance before making major changes to its business plan. Until all preopening requirements are satisfied, the regulator can modify, suspend, or withdraw its preliminary approval.
Trump ties keep World Liberty under political scrutiny
World Liberty’s ownership and foreign transactions have drawn attention from Democratic lawmakers who argue that Trump’s financial interest in the company creates a conflict with his administration’s role in regulating digital assets.
An entity affiliated with Trump and members of his family owns about 38% of World Liberty’s holding company, according to public disclosures cited by Reuters. Zach Witkoff is also the son of Steve Witkoff, Trump’s special envoy and a co-founder emeritus of the crypto company.
The White House has said the president’s assets are held in a trust managed by his children. It has also maintained that Trump does not participate in managing World Liberty while serving as president.
Questions intensified after reports that Aryam Investment 1, an Abu Dhabi-based vehicle backed by UAE National Security Adviser Sheikh Tahnoon bin Zayed Al Nahyan, acquired a 49% stake in World Liberty for $500 million. Sheikh Tahnoon also chairs MGX, the company that later used USD1 for the Binance investment.
In June, Democratic senators requested hearings into the reported transaction and asked whether it influenced U.S. decisions involving arms sales and access to advanced artificial intelligence chips. The lawmakers also questioned whether federal agencies had conducted a national security review of the investment.
The OCC addressed some foreign ownership concerns in its approval decision, stating that non-U.S. investors were not considered principal shareholders of the proposed trust bank. Several investors signed passivity agreements promising not to control or influence the institution’s operations.
Eric Trump signed one such commitment as president of DT Marks, a Trump family-linked investment vehicle. Under the OCC’s conditions, voting interests of 10% or more must remain passive, while voting power above 9.9% would be exercised through a proportional proxy.
World Liberty Trust plans to operate with segregated customer assets, independent reserve management, anti-money laundering controls, and sanctions screening. OCC examiners would supervise the institution after it meets the remaining conditions and receives permission to open.
Zach Witkoff is expected to chair the proposed bank’s five-member board. Scott Alper and Robert Witkoff would serve alongside independent directors Jeffrey Weiner, the former CEO of accounting firm Marcum, and Erin Baskett, a member of the FINRA Board of Governors.
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