Trump Family Crypto Venture Boosted by $2 Billion Emirati Investment Deal

An Emirati investment firm’s $2 billion deal could greatly support the Trump family-linked World Liberty Financial. Their USD1 stablecoin is set to feature in the deal with crypto exchange Binance. The Trump family’s growing involvement in crypto raises ethical questions regarding potential conflicts of interest during Trump’s presidency, while the venture promises future retail integration of cryptocurrency.

In a significant development within the cryptocurrency sector, an Abu Dhabi state-backed investment firm is set to engage in a $2 billion deal that may greatly benefit World Liberty Financial, a digital asset venture connected to the Trump family. Zach Witkoff, co-founder of World Liberty Financial, announced this partnership on stage with Eric Trump at a crypto convention in Dubai, indicating that their USD1 stablecoin will play a key role in the investment.

Witkoff referred to USD1 as a “stablecoin,” which is a type of cryptocurrency designed to maintain a consistent value. He confirmed that this digital currency will be the official medium for the substantial investment from Emirati firm MGX into the prominent crypto exchange Binance. This news, shared in a clip on X, reflects the growing influence of the Trump family in the cryptocurrency market.

Notably, this is a pivot for Donald Trump, who previously labelled cryptocurrencies a “scam.” However, since last September, the former president and his sons have shifted their stance to support World Liberty Financial, even though details regarding their business model remain vague. This latest investment marks another instance of foreign interests getting involved with the Trump family business, raising eyebrows among ethical and political experts.

Critics have voiced concern about the implications of this venture. Experts in cryptocurrency ethics suggest the Trump family’s engagement in this market may lead to potential conflicts of interest, particularly as they could potentially influence economic policy that benefits their financial interests. Danielle Brian, of the Project on Government Oversight, highlighted that the current ethics laws allow such financial entanglements in an unprecedented manner.

Donald Trump has yet to divulge his financial disclosures from his presidency, leaving questions about how he separates his business interests from his political responsibilities. During the Dubai convention, Eric Trump participated in what the hosts described as a “fireside chat” with Zach Witkoff, whose father, Steve Witkoff, served as Trump’s Middle East Envoy.

Interestingly, Justin Sun, a notable figure from the cryptocurrency space, moderated the chat. He has previously invested heavily in World Liberty Financial just before Trump’s inauguration, leading to scrutiny over his dealings, especially given the SEC’s action against alleged fraudulent activities involving him.

Zach Witkoff also mentioned a strategic collaboration with Tron – another cryptocurrency founded by Sun. This partnership is aimed at creating hundreds of millions to billions in USD1 coins. In addressing the event, Witkoff expressed ambitions of making World Liberty Financial’s tokens commonplace in everyday transactions, such as at local delis or even in hotels.

During this chat, Eric Trump humorously pointed out that it was odd for Witkoff to use the Four Seasons in Abu Dhabi as an example instead of Trump Tower. Meanwhile, Witkoff instilled confidence by asserting that USD1 is intended to be backed by secure assets, thus claiming it would be the world’s most transparent stablecoin.

The Witkoff and Trump families have reportedly raised around $550 million for their venture into the crypto space, according to reporting from the New York Times. Additional announcements made during the event indicated that Trump ventures are also moving forward in the UAE, with plans for a remarkable skyscraper touted to have the world’s tallest swimming pool, aiming for an entry into the Guinness World Records.