A stablecoin called USD1, linked to Donald Trump’s World Liberty Financial, is facilitating a $2 billion investment by Abu Dhabi’s MGX into Binance. The announcement was made by co-founder Zach Witkoff at a conference in Dubai. The venture has drawn criticism, especially from Senator Elizabeth Warren, expressing concerns over ethical implications and potential corruption. Meanwhile, USD1 is gaining traction in crypto markets, with Binance’s blockchain backing it, and is set for integration into the Tron blockchain.
An Abu Dhabi investment firm is using a stablecoin launched by Donald Trump’s World Liberty Financial for its ambitious $2 billion investment in the crypto exchange, Binance. This news broke during a crypto conference in Dubai when Zach Witkoff, a co-founder of World Liberty, announced the selection of the stablecoin called USD1, which is designed to be pegged to the US dollar and is backed by various cash equivalents. This venture is the latest in a series of crypto-related projects associated with the Trump name, including a recently launched meme coin that has attracted criticism over ethical concerns and potential conflicts of interest.
Witkoff expressed excitement over the announcement, noting that USD1 would facilitate the closing of MGX’s significant investment in Binance, the largest crypto exchange globally. Interestingly, Zach Witkoff is the son of Steve Witkoff, who acts as Trump’s special envoy to the Middle East. This connection adds another layer of scrutiny to the deal amidst calls for increased regulation and transparency in the crypto market, especially as stablecoins have sparked considerable debate in legislative circles.
Democratic Senator Elizabeth Warren quickly expressed her concerns, criticising both the potential implications of the investment and the broader trend of crypto legislation currently in Congress. She mentioned the incoming Senate rules that might benefit Trump and his family financially, declaring: “This is corruption and no senator should support it.” This discontent aligns with wider apprehensions regarding the crypto economy’s favourability toward influential political figures.
The USD1 stablecoin has gained traction in crypto trading, with its market capitalisation reportedly hitting around $2.1 billion, according to CoinMarketCap. The rapid growth of USD1 accentuates World Liberty’s rising influence within the cryptocurrency sector. Moreover, this stablecoin operates on Binance’s blockchain, linking it closely to the exchange’s operations and leadership.
Interestingly, a large amount of USD1, approximately $2 billion, has been funneled into an unidentified cryptocurrency wallet during a short span, raising questions about its ownership and intentions. Data analysis from Arkham suggests significant sums were relocated to this wallet between mid-April and late April, but the owner has yet to be disclosed.
In a related development, Changpeng Zhao, Binance’s founder, and former CEO, met with Zach Witkoff in Abu Dhabi amidst the backdrop of his recent legal troubles. Zhao, who has stepped back following a multi-billion dollar legal settlement with U.S. authorities, acknowledged the meeting on social media, describing it as a positive encounter.
Zach Witkoff also informed attendees that USD1 would be integrated into the Tron blockchain, owned by Justin Sun, a key investor in World Liberty Financial. Sun reportedly invested around $75 million into the venture while facing a U.S. securities fraud lawsuit. Meanwhile, his elevation to an advisory role further complicates the dynamics around these emerging financial technologies.
Trump, who touted being a potential “crypto president” during his 2016 campaign, has transferred the management of his assets to his children. Despite this, he continues to exert influence, and the company is adamant that he has no active role in everyday decisions regarding these business ventures.
