Coinbase denies involvement in Bloomberg report linking Binance to USD1 stablecoin

Coinbase is pushing back against claims that it was the source of a Bloomberg article tying Binance to a stablecoin project linked to U.S. president Donald Trump.

In a July 13 post on X, Coinbase chief legal officer Paul Grewal called the rumor “pure misinformation,” rejecting any suggestion the company contributed to the report. “We absolutely did not contribute to this story,” he said, adding that Coinbase doesn’t attack competitors and supports any business that helps grow the crypto industry.

The comment was in response to a post by crypto influencer Matt Wallace, who claimed without evidence that Coinbase was the anonymous source behind Bloomberg’s story. Wallace alleged the company was motivated by fears that Binance, currently restricted from operating fully in the U.S., could regain market access if Trump pardons its former CEO, Changpeng Zhao. 

Wallace argued this could threaten Coinbase’s market share. CZ reposted Wallace’s post without any comment, further fueling speculation. 

Published on July 11, the Bloomberg article reported that Binance helped develop the USD1 stablecoin issued by Trump-linked World Liberty Financial by writing its smart contract. It also said the token was used in a $2 billion investment in Binance by a UAE-based investment fund, and that more than 90% of USD1 remains in Binance wallets.

The report also noted that Zhao is seeking a pardon after pleading guilty in 2023 to violating anti-money-laundering laws. Zhao dismissed the article as “FUD” and claimed it was “sponsored by a competitor,” accusing Bloomberg of publishing factual errors. He suggested he might sue for defamation, as he did in a prior dispute with the outlet in 2024.

Neither World Liberty Finacial nor the White House responded to questions from Bloomberg. While the report cited unnamed sources and blockchain data, it offered no indication that Coinbase was involved.