A stablecoin introduced by World Liberty Financial, a cryptocurrency venture co-founded by Donald Trump, has been earmarked for a significant financial transaction involving a $2 billion investment from an Abu Dhabi-based investment firm into Binance, according to statements made by one of World Liberty’s co-founders on Thursday.
This development marks a continuation of the Trump family’s ventures into the cryptocurrency space, which also includes a “meme coin” launched earlier this year—notably drawing scrutiny from ethics experts and political commentators concerned about potential conflicts of interest.
World Liberty Financial, which aims to promote direct access to financial services devoid of traditional banking intermediaries, announced in March its plans to roll out USD1, a stablecoin pegged to the U.S. dollar and supported by an array of U.S. Treasuries and cash equivalents.
US SOLIDIFYING ITSELF AS BITCOIN MINING HUB
At a cryptocurrency conference in Dubai, Zach Witkoff, a co-founder of World Liberty, revealed that USD1 will serve as the official stablecoin facilitating MGX’s substantial investment in Binance, recognized as the largest cryptocurrency exchange worldwide.
“We are thrilled to announce that USD1 has been officially selected to facilitate MGX’s $2 billion investment in Binance,” stated Witkoff, who is also the son of Steve Witkoff, Trump’s special envoy to the Middle East.
The announcement was met with criticism from Democratic Senator Elizabeth Warren, who raised concerns about potential corruption over the current U.S. legislation regarding stablecoins, especially given the Trump family’s involvement. “A fund backed by a foreign government just announced it will make a $2 billion deal using Donald Trump’s stablecoins. This is corruption, and no senator should support it,” Warren, who serves on the Senate Banking Committee, remarked.
Both the White House and World Liberty Financial did not respond to requests for comment immediately following the announcement.
The choice to utilize USD1 for this investment underlines World Liberty’s expanding influence in the global cryptocurrency arena, as well as its connection to Binance, where USD1 is issued. Stablecoins have emerged as a vital component in global cryptocurrency trading. Their issuers often profit from interest generated by the underlying assets that support them.
As of recent reports, the circulation of USD1 has reached approximately $2.1 billion, making it one of the rapid-growth stablecoins. However, the primary holders of this token remain unidentified.
An undisclosed cryptocurrency wallet that holds $2 billion in USD1 reportedly received these funds between mid-April and late April, according to data from Arkham, a cryptocurrency research firm. However, Reuters was unable to confirm the owner of this wallet.
TRUMP’S MEME COIN SOARS AS PRESIDENT OFFERS DINNER TO TOP HOLDERS
Changpeng Zhao, the founder and former CEO of Binance, who was incarcerated in the U.S. last year after pleading guilty to money laundering violations, met with Zach Witkoff and two other World Liberty co-founders in Abu Dhabi, sharing a photo of the meeting on social media platform X.
Zhao remarked, “It was great to see our friends” in Abu Dhabi while tagging Witkoff in the post.
Despite stepping down from his position at Binance as part of a $4.3 billion settlement regarding unlawful finance accusations in 2023, Zhao remains a significant shareholder of the platform.
TRON INTEGRATION
In a related announcement, Zach Witkoff also disclosed that USD1 is set to be integrated into Tron, a blockchain founded by Hong Kong-based entrepreneur Justin Sun.
Sun, who has committed at least $75 million into World Liberty, is recognized as the largest known investor in the venture and serves as an advisor, according to his social media disclosures. At the time of his initial investment in World Liberty, Sun was engaged in a legal battle against a U.S. securities fraud lawsuit, which has currently been paused by the U.S. Securities and Exchange Commission for public interest reasons.
During the panel discussion featuring Witkoff, Trump’s son Eric Trump was also present, as moderated by Sun.
Trump has positioned himself as a proponent of the cryptocurrency landscape, having pledged to reform federal regulations surrounding the sector.
TRUMP CREATES STRATEGIC BITCOIN RESERVE, OTHER CRYPTOCURRENCIES TO BE USED IN STOCKPILE
Before resuming his duties at the White House, Trump transferred the management of his business assets to his children, ensuring he will not be involved in daily operations, as confirmed by his organization.
