The Trump family’s crypto venture, World Liberty Financial, is partnering with Emirati firm MGX on a $2 billion investment deal that will use their stablecoin, USD1, to invest in Binance. This venture has drawn scrutiny over potential conflicts of interest and lingering questions about the Trump administration’s cryptocurrency regulations. The partnership, announced at a Dubai crypto convention, aligns with the family’s recent embrace of digital assets despite past criticisms.
In a significant turn of events, the Trump family’s crypto venture, World Liberty Financial, is now linked to a staggering $2 billion investment deal backed by an Emirati investment firm, MGX. This hefty transaction is set to utilise World Liberty’s USD1 stablecoin — a digital currency pegged to the US dollar — to close the investment intended for the crypto exchange Binance. This announcement was made by Zach Witkoff, the co-founder of World Liberty Financial, during a crypto convention in Dubai alongside Eric Trump, son of former President Donald Trump.
Witkoff expressed excitement about the partnership, stating, “We are thrilled to announce that USD1 has been selected as the official stablecoin to close MGX’s $2 billion investment in Binance.” He acknowledged the faith that MGX and Binance have in World Liberty Financial and hinted that this is just the start of what they aim to achieve. It’s worth noting that prior to supporting cryptocurrencies, Donald Trump had labelled them a “scam”. His endorsement of World Liberty Financial came in September alongside his sons, but clarity around the company’s operations has remained elusive.
The entry of the Trump family into the crypto market is drawing scrutiny. Experts in ethics believe that this investment may raise concerns regarding potential conflicts of interest. With Trump’s administration having regulatory authority over cryptocurrency, critics warn that foreign investors might use their financial support to gain favour with the government, highlighting potential flaws in the US ethics laws. Danielle Brian, from the Project on Government Oversight, voiced her concerns, stating that the current situation pushes these issues to a new extreme, given that Trump still has financial ties to his businesses while in office.
Furthermore, it’s important to mention that Trump has not yet disclosed his financial interests during his presidency, leaving questions about the measures taken to separate his personal business dealings from his duties.
The announcement of the USD1 stablecoin was made during what was termed a “fireside chat”—a casual discussion—between Eric Trump and Zach Witkoff, moderated by Justin Sun, a prominent figure in the crypto industry. Sun became one of the largest investors in World Liberty Financial shortly before Trump took office, purchasing a significant amount of their other coin, WLFI. Interestingly, just a month after Sun’s investment, federal SEC lawyers under Trump’s administration halted a fraud investigation involving him, adding another layer of complexity to the situation.
During the event, Zach Witkoff also revealed plans for “natively integrating” the USD1 coin with Tron, a cryptocurrency initiated by Sun. He boasted that this partnership could lead to the creation of hundreds of millions to billions in coins, although the details surrounding World Liberty Financial’s full operations remain vague. The founders aim to achieve a blend of traditional retail and crypto systems, envisioning a future where their tokens are used freely in everyday transactions.
In a casual moment at the event, Eric Trump teased Witkoff for using the Four Seasons in Abu Dhabi as an example of a potential location for using crypto, suggesting Trump Tower would have been more fitting. Witkoff assured attendees that USD1 would be the “most transparent, most regulated, stablecoin in the world,” backed by anticipations of various short-term treasuries.
As it stands, the Trump family, together with the Witkoffs, has reportedly gathered at least $550 million for the World Liberty Financial initiative. Eric Trump also mentioned other business activities in the UAE, such as fast-tracking a permit for a new tower expected to host the world’s highest swimming pool.
