USD1: who collects the interest on Trump’s stablecoin?

Someone keeps 10,000 USD1 in a wallet for a year. Without making any transfers, they still have 10,000 tokens at the end. The dollars held against those tokens may have earned interest in the meantime. At an illustrative 4% yield, a fully interest-bearing $10,000 would generate $400 in gross income. USD1’s contract excludes any holder entitlement to reserve interest. Direct BitGo redemption is reserved for registered clients who meet account and compliance requirements; a user without a BitGo account must use another route. 1

That is the starting point for understanding the World Liberty Financial stablecoin. Higher short-term yields can increase the income of the business behind USD1 without raising the holder’s contractual return. The Trump family has an economic interest in that business. Establishing how much reaches them requires tracing several layers: the reserve portfolio, BitGo, commercial entities, their owners and their revenue-sharing agreements. Donald Trump’s financial disclosure identifies part of that structure. 5

Public documents establish the imbalance between those rights. They also identify compensated service providers, other owners and programmes through which some users can earn rewards. They do not establish how much Donald Trump personally would receive from an extra percentage point of yield. This analysis follows the documented structure and models its economics, with a research cutoff of October 1, 2026.

One dollar, two jobs

USD1 is a stablecoin associated with World Liberty Financial that targets one dollar per token. BitGo’s additional terms identify BitGo Bank & Trust, N.A. as the issuer. The reserve report attributes the brand to World Liberty Financial, Inc. and SC Financial Technologies, LLC, together with their affiliates. The commercial brand and the issuance infrastructure therefore sit in different entities. 2 3

When an eligible client supplies dollars to mint new USD1, reserve assets back the newly created tokens. The dollar supports an on-chain payment instrument while also funding a financial portfolio. Redemption reverses the process: the issuer receives the tokens and arranges a bank transfer, subject to account requirements, checks and applicable fees. 1

A purchase on an exchange may work differently. A seller can transfer USD1 that already exists. Ownership changes, while total supply and reserves may stay exactly the same. That distinction matters for income: moving the same dollar ten times in a day does not create ten additional dollars to invest.

Economically, this resembles a payments business retaining the yield on the funds that support its product. Reserve income depends on the amount held, its yield and how long it stays in the system. Any transaction fees and the costs of running the business must be considered separately.

For the holder, the useful product may be access to a payment method, a trading pair or an application. Forgoing interest nevertheless has an opportunity cost: depending on the holder’s access to financial markets, the dollar could have been invested elsewhere. That potential cost rises when alternative dollar investments pay more.

The holder also retains risks specific to the arrangement. The terms distinguish the token from an insured bank deposit and warn that liquidity problems can delay redemptions. No contractual interest entitlement therefore coexists with counterparty, access and resale risks. 1

Locating the interest-bearing assets

The latest report on the BitGo index reviewed for this article covers August 2026. KPMG’s independent examination is dated September 24. At 11:59 p.m. UTC on August 31, the accompanying notes report $4.1957 billion of redemption assets, backing 4.1953 billion USD1. The assets comprise $3.0664 billion in government money market fund shares and $1.1294 billion in cash and equivalents in deposit accounts. 3 17

A money market fund pools investments in short-dated instruments. The fund shares account for approximately 73.08% of the total, by our calculation. Those funds invest in short-dated instruments, so their income changes as investments mature and are renewed. The actual rate negotiated on bank deposits is another variable; the report does not disclose it. 3

This is a dated view of the assets backing the token. Measuring profits would also require realised yields, average balances over the period and all relevant costs. Assets present on the last day of a month may have arrived only the day before. Crediting them with a full month’s interest would overstate income.

Reserve billions also have a counterpart: the USD1 that may need to be redeemed. Adding the entire reserve to the owners’ wealth would ignore that obligation. The economic value of their business instead depends on the income it can retain while meeting redemptions and paying its expenses.

BitGo reveals one layer of the split

BitGo’s accounts provide a useful window. In its 10-Q filed on August 12, 2026, the company explains that it recognises reserve interest within Stablecoin-as-a-Service revenue. It also records amounts owed to institutional clients that commercialise the stablecoins, described as sponsors. 4

For January–June 2026, this activity generated $76.981 million in revenue and incurred $71.047 million in sponsor fees. The difference was $5.934 million, before other expenses. These figures cover all of BitGo’s Stablecoin-as-a-Service business, not USD1 alone. They do not identify a specific payment to World Liberty. 4

The disclosed allocation starts at BitGo and continues through its corporate clients. A service provider performs issuance, custody and management functions under a commercial agreement. The business developing the brand then meets its own expenses and allocates its earnings according to its agreements. Gross revenue, margin and distributable income are different amounts at each stage.

Distribution can involve another arrangement. On June 5, 2026, Bloomberg reported a World Liberty spokesperson’s statement that the business did not share revenue with any exchange. The article separately described funding for promotions. That is the company’s account of its arrangements; full contracts would be needed to verify their detailed operation. 13

The family interest runs through a separate corporate branch

Donald Trump’s annual financial disclosure, signed on June 29, 2026 and covering 2025, identifies two branches. DT Marks SC LLC holds 38.25% of Stablecoin Holdco LLC, while DT Marks Defi LLC separately holds 38.25% of WLF Holdco LLC. The disclosed owners of DT Marks SC are DTTM Operations LLC with 69%, Trump family members with 30%, and DT Marks SC Member Corp with 1%. This is the structure reported for that period, not assurance that it has remained unchanged. 5

The filing records $8,326,828 as net operating income from the stablecoin business. It separately reports $196,875,000 associated with contributions by new members and sales of equity units. These classifications prevent all the disclosed proceeds from being treated as reserve interest, or as a personal bank transfer to the president. 5

Another percentage needs care. The WLFI token terms, updated on March 3, 2026, entitle DT Marks DeFi and its affiliates to 75% of net protocol revenues, under a services agreement. The wording describes the covered revenue broadly and provides for deductions. It does not disclose the full interaction with the USD1 entities. 6

Applying 75% mechanically to gross reserve interest, and then adding a 38.25% ownership stake, would mix a contractual entitlement, equity ownership and different corporate perimeters. The services agreement and intercompany arrangements would identify which revenue enters which calculation, when it does so, and with what priorities. Their absence limits the calculation while leaving the documented family economic interest intact.

An extra percentage point increases gross income

The basic sensitivity is straightforward: an extra percentage point on $1 billion of interest-bearing assets produces $10 million more in annual gross income. That assumes the entire billion remains invested at the higher yield for all twelve months.

Apply that logic to the August 31 snapshot, without treating it as a forecast. If only the money market funds reprice one percentage point higher and other remuneration stays unchanged, additional annual gross income at a steady state would be $30.66 million. If the entire reserve, including cash, receives the full additional percentage point, the figure becomes $41.96 million. These are two different pass-through assumptions applied to the same observed balances. 3

Both figures measure reserve income before commercial agreements, expenses, taxes and distributions. Translating them into family income would require following the agreements and decisions of each company. A single ownership percentage cannot bridge that gap.

The relevant interest rate is primarily a short-term one. Treasury bills and the instruments held by money market funds are renewed frequently. The US ten-year yield can rise while yields at a few weeks fall. Using the ten-year in that situation would misrepresent USD1’s reserve economics. Deposit remuneration can also respond partially or with a lag to market rates.

The transition matters. An instrument bought before a rate increase retains its terms until maturity; reinvestment afterwards may earn more. Changes in yields can also alter the market value of existing securities. The benefit to future income and the interim effects on the portfolio should be considered separately.

Higher rates also intensify competition for balances. If holding USD1 becomes less attractive than alternative investments, redemptions may shrink the reserve. In our entirely hypothetical example, $4 billion at 4% produces $160 million a year. At 5%, it produces $200 million. But if the balance falls to $3.2 billion, income returns to $160 million. Here, a 20% outflow cancels the benefit of the extra percentage point. The CSV calculation preserves all three assumptions, their units and annual gross results.

Large settlements can help build lasting balances

This explains the economic importance of partnerships. On March 12, 2025, MGX announced a $2 billion minority investment in Binance, paid in stablecoin. On May 1, Reuters reported Zach Witkoff’s announcement that USD1 had been selected for settlement. The underlying investment purchased an interest in Binance. 15 16

For a stablecoin business, the subsequent financial opportunity depends on the tokens remaining outstanding. A $2 billion balance retained for a full year at an illustrative 4% yield would generate $80 million gross. Rapid redemption would shorten the earning period. This demonstrates scale, not the actual income from that transaction or evidence that the same $2 billion remains outstanding today.

Choosing a settlement instrument can therefore create a lasting economic relationship with its operator even when the principal investment goes to another company. Measuring that effect requires net issuance and the duration of the outstanding balance. A transaction’s headline size alone does not provide the answer.

Users can earn through other channels

The basic contract gives the holder no reserve-interest entitlement. Separate programmes can provide other benefits. Binance announced $40 million in WLFI token rewards for eligible USD1 holders during a campaign running from January 23 to February 20, 2026. The campaign has ended. Rewards depended on distribution rules and the value of the token received. France was among the excluded jurisdictions. 8

Lending is a different channel. WLFI Markets documentation describes rates paid by borrowers and earned by liquidity suppliers. Someone supplying USD1 is exposed to the protocol and its liquidity: displayed rates can change, and withdrawals can be constrained when too few funds are available. This income comes from lending activity and carries additional risks. 9

USD1 Points are a further category: platform-specific, non-transferable participation measures. The reviewed terms do not establish a certain dollar value for them. 10

The WLFI token must also be distinguished from equity in the company. Its terms give holders neither corporate ownership nor a contractual revenue share. Its market price can move and programmes may distribute tokens, but those possibilities differ from owning an interest in Stablecoin Holdco. 6

These arrangements can benefit users and support USD1’s growth at the same time. A promotional expense incurred today may help maintain an interest-bearing reserve tomorrow. The relevant calculation compares the cost of the incentives with the additional income actually retained over time. A generous reward lasting a few weeks does not describe the economics of the entire customer relationship.

A proposed bank could move some functions in-house

The structure is still evolving. On August 14, 2026, the OCC granted preliminary conditional approval for World Liberty Trust Company, a proposed subsidiary of WLTC Holdings LLC. The plan envisages taking over USD1 issuance, redemption and reserve management from BitGo. The material reviewed does not establish final authorisation to open. 7

Bringing these functions in-house could change service-provider fees and the location of retained margins. It would also require funding regulatory capital, staffing, controls and infrastructure. Owning more stages of the chain offers additional earning potential along with the responsibilities attached to those functions.

The banking file names Zachary and Robert Witkoff in the proposed leadership. Reuters identifies Zachary as Steve Witkoff’s son and Robert as his brother. These roles do not quantify their personal distributions. 14 It also includes a passive-investor undertaking from DT Marks SC signed by Eric F. Trump. That undertaking restricts influence. Passivity does not, by itself, divest an economic interest. 7

The wider legal framework also needs a date. The GENIUS Act, enacted on July 18, 2025, provides for a prohibition on issuer-paid yield solely for holding, using or retaining a payment stablecoin. Section 20 sets a delayed effective date: the earlier of eighteen months after enactment or 120 days after certain final rules. On September 24, 2026, the Fed’s releases were still proposals within its supervisory perimeter. USD1’s own contract establishes the holder’s current interest entitlement without assuming that all implementing rules are already final. 11 12

A documented private interest, with limits on attribution

The coexistence of a family financial business and public decisions affecting its sector presents a documented governance question. The OCC received objections concerning potential conflicts of interest and preferential treatment. The agency responded that career staff had assessed the application under the applicable requirements. The White House also rejected the existence of conflicts in a response reported by Bloomberg in June. 7 13

USD1’s economics reveal a specific incentive: at constant reserve balances, higher short-term yields can increase income in a business in which the family holds an interest. That does not explain a monetary-policy decision, a regulatory authorisation or Donald Trump’s personal preference. Higher rates can simultaneously raise financing costs and reduce the value of other assets.

An ordinary USD1 holder funds a reserve without a contractual claim on its interest. The resulting income flows through service providers, companies and their economic beneficiaries, among whom the Trump family is identifiable. Quantifying personal gains requires the current sharing agreements and actual distributions. The calculation per billion dollars and per percentage point establishes the earning power of the model. It cannot replace those documents.

Following the dollar and the holder’s rights

Our analysis of reserves, fees and redemption delays follows the routes to spendable dollars. The GENIUS Act guide explains the US framework; the regulator map sets out the roles of the OCC, the Fed and other agencies.

Sources and documents

1. BitGo : Coin Minting & Redemption Services Terms and Public Terms. III.1(B), II.4(B), III.7(A,D,N).
2. BitGo : Additional Terms to the BitGo Coin Minting Services Terms and Public Terms. Fiat Referenced Coins / USD1.
3. BitGo / KPMG : USD1 Reserve Report for August 2026. PDF pp. 1–2 accountant report; pp. 4–7 Notes A, B, C; observation 2026-08-31 23:59 UTC.
4. BitGo Holdings / SEC EDGAR : Form 10-Q, quarter ended June 30, 2026. Note 3 revenue; MD&A Stablecoin-as-a-Service and sponsor fees; six months ended June 30.
5. Donald J. Trump / U.S. Office of Government Ethics : 2026 annual public financial disclosure, reporting year 2025. Cover: signed/received June 29, certified June 30, 2026. Schedule 1 for Part 2, lines 114, 124, 204–204.1, 405; PDF pp. 854, 855, 859, 867.
6. World Liberty Financial : WLFI Token Use and Acquisition T&Cs. Sections 1 and 9.10.
7. Office of the Comptroller of the Currency : Corporate Decision 1385: World Liberty Trust Company. PDF pp. 1–2 planned activities; p. 5 comments and agency response; p. 11 directors; pp. 14–15 DT Marks SC passivity commitment.
8. Binance : Hold USD1 … to Share $40 Million Rewards in WLFI. Campaign period Jan 23–Feb 20, 2026; reward distribution.
9. World Liberty Financial Docs : WLFI Markets: Concepts. Rates; liquidity pools; utilization.
10. World Liberty Financial Docs : USD1 Points Program. What are USD1 Points; Important notes and limitations.
11. U.S. Congress / GovInfo : GENIUS Act, Public Law 119-27. Section 4(a)(11), PDF p. 14; Section 20, PDF p. 48.
12. Federal Reserve Board : Proposals for Board-supervised payment stablecoin issuers. Press release; updated September 29, 2026.
13. Bloomberg News, republished by the Daily Herald : Trump family’s stablecoin wealth fueled by Binance relationship. Bloomberg report dated 5 June 2026, republished on 6 June.
14. Reuters, republished by CNA : US regulator approves bank charter for Trump-backed crypto company World Liberty Financial. Lawrence Delevingne and Pete Schroeder; company and family roles.
15. MGX : MGX Backs Binance in Landmark Investment. Investment announcement.
16. Reuters, republished by Kitco : Trump-linked stablecoin to close Abu Dhabi investment in Binance, co-founder says. TOKEN2049 statement by Zach Witkoff.
17. BitGo : USD1 attestations index. 2026 monthly reports through August.

Scope and method

All amounts are nominal US dollars. Reserves are an observed stock at 11:59 p.m. UTC on 31 August 2026; BitGo figures are flows for the first half-year; Trump’s disclosure covers 2025. The 4% and 5% cases are hypothetical yields, with no forecast or annualisation of quarterly profit. Reserve-rate scenarios assume constant balances and full transmission of a one-point change for twelve months. CSV files linked beside the charts and in the volume example preserve exact inputs and calculations. Equity stakes and contractual revenue rights have distinct scopes. Current commercial agreements and distributions are needed to calculate any personal payout.