UAE-backed fund's plan to use a cryptocurrency created by the Trump family's company to acquire a \$2 billion stake in Binance, the world's largest cryptocurrency exchange.
The deal, announced at the Token2049 crypto conference in Dubai, involves the UAE government-backed fund MGX utilizing the USD1 stablecoin developed by World Liberty Financial—a decentralized finance platform launched in 2024 with former President Donald Trump as "chief crypto advocate" and his sons, including Barron Trump, in key roles. The transaction raises ethical concerns over potential conflicts of interest, especially as Binance is under U.S. federal oversight following an anti-money-laundering conviction in 2023. Binance’s founder, Changpeng Zhao, served four months in prison and is reportedly seeking a Trump pardon. The Trump family may financially benefit from the deal through interest earned on token deposits. Notably, some token buyers are foreign nationals barred from U.S. political contributions, raising further legal questions. Eric Trump highlighted plans to integrate the cryptocurrency with Trump-branded properties in the UAE, while President Trump prepares for a state visit to Gulf nations.
This development underscores the growing intersection of politics and cryptocurrency, highlighting how digital assets are increasingly influencing global financial strategies.