Abu Dhabi’s MGX is investing $2 billion in crypto, boosting the Trump family’s World Liberty Financial. Their stablecoin, USD1, will be used in the transaction with Binance. This development raises ethical concerns about foreign investments influencing U.S. policy, especially as Trump has not disclosed his financial arrangements.
In a notable development from the cryptocurrency sector, an Abu Dhabi-based investment firm, MGX, is reportedly injecting $2 billion into a crypto deal that could significantly elevate World Liberty Financial. This venture is associated with the Trump family, specifically Eric Trump. Co-founder Zach Witkoff confirmed that their stablecoin, USD1, will be the medium for this substantial transaction with Binance, announced during a crypto convention in Dubai this week.
“We are thrilled to share that USD1 has been chosen as the official stablecoin for MGX’s $2 billion investment in Binance,” Witkoff declared in a video shared on X. He expressed gratitude to both MGX and Binance, noting this as just the beginning of their partnership.
Interestingly, President Donald Trump had previously labelled cryptocurrencies as a “scam”. Yet, since last September, he and his sons have voiced support for World Liberty Financial, though it remains somewhat ambiguous what their exact business model entails. This latest investment highlights increasing foreign interest in businesses connected to the Trump family, a point that raises eyebrows among ethics experts.
Critics, including those from the Project on Government Oversight, have scrutinised the implications of these overseas investments. They speculate that investors might attempt to influence U.S. policies through these financial contributions, especially given Trump’s position and some unclear ethics surrounding regulation of cryptocurrencies.
Danielle Brian, the executive director of the watchdog group, remarked that it seems the Trump administration is pushing the boundaries of ethics laws by allowing the president to maintain business interests while in office. Adding to the concern, Trump has not disclosed his financial dealings since assuming the presidency, leaving the boundaries of his business entanglements uncertain.
A White House spokesperson recently stated that the President’s assets are held in a trust managed by his children, maintaining no conflicts of interest exist. This statement comes on the heels of the USD1 announcement and during a panel featuring Eric Trump and Zach Witkoff, moderated by prominent crypto figure Justin Sun. Notably, Sun had previously made a significant investment in World Liberty Financial just before Trump took office.
Witkoff, at the event, also revealed plans for USD1 to be integrated with Tron, a cryptocurrency initiated by Sun. He forecasted that millions or even billions of dollars would be minted from this integration.
World Liberty Financial’s operational specifics still seem a bit elusive, but its founders aim to integrate their digital currency into conventional retail settings. Witkoff spoke of a vision where users could effortlessly transact using their tokens in places like a New York deli or the Four Seasons in Abu Dhabi – although Eric Trump playfully chastised him for not mentioning Trump Tower instead.
Witkoff characterized the USD1 coin as the “most transparent and regulated stablecoin in the world”, claiming it will be backed one-to-one by short-term treasuries and cash equivalents. Together, the Trumps and Witkoffs have reportedly raised at least $550 million for their crypto initiatives.
In addition to commentary on the crypto venture, Eric Trump mentioned other Trump business projects in the UAE, highlighting the swift approval for a new skyscraper equipped with the world’s highest swimming pool, which is likely to make its way into the Guinness Book of World Records very soon.
