A UAE-backed investment firm, MGX, is set to acquire a $2 billion minority stake in Binance, the world’s largest cryptocurrency exchange, using a stablecoin developed by the Trump family’s crypto venture, World Liberty Financial. The stablecoin, known as USD1, is pegged to the U.S. dollar and backed by U.S. Treasuries and cash equivalents. The announcement was made by Zach Witkoff, co-founder of World Liberty Financial, and Eric Trump during the TOKEN2049 crypto conference in Dubai.  

This transaction marks MGX’s first major foray into digital assets and represents Binance’s largest institutional investment to date. The deal underscores the growing influence of the Trump family in the crypto industry, with former President Donald Trump serving as the “chief crypto advocate” for World Liberty Financial.  

However, the investment has raised ethical concerns due to potential conflicts of interest, especially considering Binance’s previous legal issues in the U.S., including a 2023 conviction for anti-money laundering violations. Critics argue that the Trump family’s involvement in such a significant financial transaction, while maintaining political influence, could blur the lines between business and governance. 

Eric Trump also mentioned plans to integrate USD1 into Trump-branded properties in the UAE, indicating a broader strategy to intertwine the family’s business ventures with their digital currency initiatives. 

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