The Trump family’s World Liberty Financial secures a $2 billion backing from an Emirati investment firm, linked to their USD1 stablecoin for a deal with Binance. The announcement, made at a Dubai crypto convention, raises questions on ethical implications regarding presidential ties to cryptocurrency ventures. Reports include Eric Trump discussing additional business activities in the UAE.
In a significant move for the Trump family’s cryptocurrency venture, World Liberty Financial, an Abu Dhabi state-backed investment firm is set to pour $2 billion into the project. Co-founder Zach Witkoff revealed that this deal will be linked to World Liberty Financial’s USD1 stablecoin, aimed at facilitating a major transaction with crypto exchange Binance. This news emerged during a crypto convention in Dubai, where Witkoff appeared alongside Donald Trump’s son Eric Trump.
Witkoff announced in a video shared on X that the USD1 stablecoin had been selected for the investment deal involving MGX, emphasising their excitement and gratitude towards MGX and Binance. The selection of USD1 as the official stablecoin certainly highlights the growing influence of the Trump family in the cryptocurrency sector, especially after Donald Trump once dismissed cryptocurrencies as a scam.
Last September, the former president, alongside his sons Eric and Don Jr., publicly endorsed World Liberty Financial, although details about its business model remain murky. This investment may reflect wider trends of foreign firms investing heavily in enterprises related to Trump, stirring discussions about potential conflicts of interest. Critics have pointed out the complexities intertwined with ethical concerns over cryptocurrency regulation during Trump’s presidency.
Experts voicing concerns have highlighted how this significant investment could provide opportunities for investors to influence presidential decisions. Danielle Brian from the Project on Government Oversight explicitly mentioned that the current ethics laws enabling a sitting president to hold business interests while in office could complicate matters. The uncertainty surrounding Trump’s financial disclosures adds further ambiguity to his ongoing financial involvement.
The announcement of the USD1 stablecoin was made during a moderated discussion, termed a “fireside chat,” featuring Eric Trump and Witkoff. Justin Sun, a notable figure in the crypto space, also played a role in enhancing the venture’s credibility, having invested significantly just prior to Trump’s inauguration. Interestingly, shortly after Sun’s investment, actions were taken by SEC lawyers to suspend a fraud case against him.
Zach Witkoff detailed the plans for integrating the USD1 coin with Tron, a cryptocurrency founded by Sun, suggesting that their operations could mint substantial amounts of digital coins. However, much of World Liberty Financial’s inner workings remain unclear, with the venture aiming to merge into regular retail settings. Witkoff expressed a vision where consumers could use its currency seamlessly in everyday transactions, even jokingly specifying luxury venues.
During the event, Eric Trump joked that Witkoff should have used Trump Tower as an example instead of the Four Seasons in Abu Dhabi. Witkoff asserted that the USD1 will be rigorously backed, aiming to set new standards for transparency and regulation in the stablecoin market. Together, the Trumps and the Witkoffs are reported to have raised over $550 million for World Liberty Financial’s various tokens.
In the backdrop of this crypto venture, Eric Trump also touched on other Trump business developments in the UAE, mentioning that the Trump Organization expedited the approvals for a high-rise with a record-setting swimming pool, which they expect to be acknowledged in the Guinness Book of World Records.
ABC News correspondent Karem Inal contributed details to this report.
