According to Reuters, the US dollar stablecoin USD1, launched by the cryptocurrency startup World Liberty Financial (WLFI) supported by President Donald Trump, has become the official settlement tool for a $2 billion investment by an Abu Dhabi investment company in the world's largest cryptocurrency exchange Binance. This move marks the rapid expansion of the Trump family's influence in the cryptocurrency and global financial markets, raising strong concern and criticism from American politics and regulators.
Will the stablecoin USD1 be deeply tied to Binance?
WLFI launched USD1 in March this year, a stablecoin pegged to the US dollar, backed by US Treasury bonds, cash, and other equivalent assets, and issued on the BNB Chain.
According to data from CoinMarketCap, as of this Wednesday, the circulating value of USD1 has reached $2.1 billion, making it one of the fastest-growing stablecoins currently. WLFI founder Zach Witkoff revealed in a speech that Abu Dhabi's MGX investment company will use USD1 to complete a $2 billion investment transaction with Binance. Notably, Witkoff is also the son of Trump's Middle East envoy Steve Witkoff, further highlighting the deep ties between World Liberty and the Trump family.
Additionally, Binance founder Changpeng Zhao also met with Witkoff and two other WLFI co-founders in Abu Dhabi.
According to on-chain data from cryptocurrency research firm Arkham, there was indeed an anonymous wallet that received $2 billion worth of USD1 between April 16 and 29.
Integration with Tron, Justin Sun invests $75 million
On the other hand, Zach Witkoff also announced at the event that USD1 will be integrated into the Tron blockchain led by Justin Sun. Justin Sun is not only the largest known investor in World Liberty but also serves as an advisor to the project, having invested at least $75 million. Interestingly, Justin Sun also hosted this Dubai discussion, sharing the stage with Witkoff and Trump’s son Eric Trump.
Strong backlash from American politics
Democratic Senator Elizabeth Warren, a member of the Senate Banking Committee, expressed strong criticism of this transaction. She pointed out that this move shows that the Trump family may be profiting from cryptocurrency policies.
"A fund supported by a foreign government just announced it will complete a $2 billion transaction through Trump's stablecoin," Warren stated. "And the Senate is preparing to pass the 'GENIUS Act', which will make it easier for the president and his family to fill their pockets. This is naked corruption, and no senator should support it."
As the current President of the United States, Trump promised during his campaign to become the 'crypto president' and vowed to reform the federal cryptocurrency regulatory system. He has entrusted the management of his personal assets to his children and claims not to be involved in daily decision-making. However, as the Trump family's investments in the cryptocurrency industry expand, doubts about potential conflicts of interest are growing stronger.
Source
