A major turning point has just occurred in the world of cryptocurrency as Binance – the world's leading cryptocurrency exchange – received a $2 billion investment from a state investment fund of Abu Dhabi, using USD1, a new stablecoin linked to the family of former U.S. President Donald Trump.
Attention-grabbing announcement in Dubai
This information was announced by Zach Witkoff, co-founder of World Liberty Financial – the issuer of USD1, at a cryptocurrency event in Dubai, with the appearance of Eric Trump, the second son of Donald Trump.
"We are very pleased to announce that USD1 has been chosen as the official stablecoin to complete the $2 billion investment from MGX into Binance," Witkoff stated in a video posted on social media X.
He added that this is just the beginning of broader collaborations among the stakeholders.
Stablecoin linked to the Trump family
USD1 is issued by World Liberty Financial – a company actively promoted by Donald Trump and his two sons Eric and Don Jr. Although the Trump family had previously expressed skepticism towards cryptocurrencies, even calling them a 'scam', their support for USD1 indicates a significant turning point in their financial and political strategy.
The agreement to use USD1 to invest in Binance has placed World Liberty Financial – still quite vague about its business model – at the center of one of the largest deals in the crypto industry this year.
Ethical concerns and conflicts of interest
The fact that Trump, who is running for U.S. President in 2024, has financial ties to a cryptocurrency raises many ethical questions.
"The president is exploiting loopholes in ethical laws to maintain financial interests while in office," said Danielle Brian – Executive Director of the Project on Government Oversight.
It remains unclear how the White House or regulators will handle the connection between Trump and crypto activities if he is re-elected.
Justin Sun – the mysterious intermediary
Another notable figure in the deal is crypto billionaire Justin Sun, who has previously been investigated by regulators. He is believed to have played an intermediary role in the announcement of USD1, and just one day before Trump's presumed inauguration (in 2024), Sun purchased $75 million in WLFI tokens – another currency from World Liberty Financial.
Witkoff also stated that USD1 will be natively integrated into the Tron network – the blockchain founded by Justin Sun. He emphasized that the company will issue hundreds of millions to billions of USD1 in the near future, asserting this is the 'most transparent, strictly regulated stablecoin in the world', backed by short-term U.S. Treasury bonds and cash equivalents.
Conclusion
The deal between MGX and Binance is not just a massive financial investment but could also become a 'strategic leverage' bringing the Trump family back to the center of the digital financial world. With the participation of both the Arab state investment fund, the Tron network, and controversial figures like Justin Sun, this could reshape the balance of power in the global crypto industry.
