Stablecoin Connected to Trump Utilized in $2 Billion Binance Transaction With Abu Dhabi Company
In a bizarre development in the ongoing crypto-political drama, a $2 billion investment agreement involving Binance has just taken on an additional layer of complexity. A financial firm from Abu Dhabi is acquiring a minority interest in the largest crypto trading platform globally, and the transaction is being executed in a stablecoin associated with the Trump family. Yes, you heard that right. This is the inaugural instance of a stablecoin linked to the Trump family being utilized in a prominent crypto trading network transaction.
The currency, USD1, is provided by World Liberty Financial, a relatively fresh contender in the stablecoin arena that boasts a roster filled with Trump-associated roles, ranging from “Decentralized finance visionary” Barron Trump to “Web3 ambassadors” Eric and Don Jr. The update of the deal was made at TOKEN2049 Dubai, generating considerable intrigue.
The Parties Involved and the Agreement
The organization facilitating the investment is MGX, led by Sheikh Tahnoon bin Zayed Al Nahyan, who happens to also be the national protection adviser of the UAE. MGX has a history of investing in ambitious tech startups. They’ve teamed up with BlackRock and Microsoft in the past for a $30 billion AI fund. This time, they’re making a significant move into crypto.
Trump’s World Liberty Financial states that Abu Dhabi’s MGX fund is committing $2 billion to Binance using World Liberty’s USD1 stablecoin, prompting ethical queries (@yaffebellany / New York Times)https://t.co/RSm948t9Bphttps://t.co/lMaZcxKDWThttps://t.co/ZOzeer2dpR
— Techmeme (@Techmeme) May 2, 2025
Here’s the kicker? Rather than transferring U.S. dollars or utilizing a well-known stablecoin like USDC, MGX is opting for USD1, a relatively lesser-known stablecoin until now, which was launched last year by World Liberty Financial. That firm was established by Zach Witkoff, the son of real estate mogul and Trump associate Steve Witkoff. Furthermore, the Trump family’s connection is anything but discreet.
Per company documentation, President Donald Trump is identified as “chief crypto advocate.” Eric and Don Jr. hold the titles of “Web3 ambassadors,” while Barron is genuinely the “Decentralized finance visionary.” It seems like a spoof, but it’s indeed factual. USD1 is tied to the dollar and allegedly secured by U.S. Treasuries, similar to other stablecoins aiming to maintain a 1:1 ratio with the dollar.
.@worldlibertyfi pic.twitter.com/mwhVIzPJyq
— Donald J. Trump (@realDonaldTrump) August 29, 2024
Why This Is Sparks Controversy
Let’s be clear, $2 billion isn’t an inconsequential amount. Using a politically-connected stablecoin to funnel that extent of capital into a crypto platform that has recently faced serious criminal allegations in the U.S. raises numerous alarm bells.
DISCOVER: Top 20 Crypto to Buy in March 2025
Binance, of course, pleaded guilty in 2023 to breaching U.S. anti-money-laundering regulations. It accepted billions in fines and has been subjected to stringent federal supervision since. Thus, the notion that a Trump-associated entity is now integrated into Binance’s recovery narrative? That’s bound to draw scrutiny and probably investigation.
Critics are also highlighting the notable conflict of interest issues. If the Trump family gains financially from this stablecoin and a transaction with Binance, how does that impact perceptions of neutrality, particularly with Trump campaigning for office again?
Furthermore, some purchasers of USD1 tokens are reportedly foreign nationals who are barred from contributing to U.S. political campaigns, further complicating the ethical landscape.
Wrap Up
A $2 billion investment in crypto was bound to garner attention. However, executing it via a stablecoin affiliated with the Trump brand propels this story into entirely new territory. It serves as a reminder that in the realms of crypto, politics, and finance, distinctions are becoming increasingly blurred. Whether this action withstands legal examination is another matter entirely, one that regulatory bodies may soon have to confront.
DISCOVER: 20+ Next Crypto to Explode in 2025
Join The 99Bitcoins Announcement Discord Here For The Latest Market Updates
Key Takeaways
- An Abu Dhabi firm, MGX, is investing $2 billion in Binance utilizing USD1, a Trump-affiliated stablecoin issued by World Liberty Financial.
- USD1 is tied to the U.S. dollar and endorsed by the Trump family, featuring titles such as “chief crypto advocate” (Donald Trump) and “DeFi visionary” (Barron Trump).
- The transaction was disclosed at TOKEN2049 Dubai, provoking ethical worries due to the Trump family’s connection and Trump’s active political campaign.
- Binance, which acknowledged guilt in U.S. AML infringements in 2023, is still under federal scrutiny, adding regulatory pressure to the already contentious deal.
- Detractors caution that deploying a politically branded stablecoin in a multibillion-dollar transaction could instigate legal and conflict-of-interest examinations.
The post Trump-Linked Stablecoin Used in $2B Binance Deal With Abu Dhabi Firm appeared first on 99Bitcoins.
