World Liberty Financial, a company affiliated with Trump, launched USD1, a stablecoin built by Binance and used to pay for a $2 billion investment in MGX, triggering global scrutiny regarding transparency and influence.

USD1, Binance Exchange, and the Connection to Trump

In a year rife with legal battles and institutional changes in the cryptocurrency space, a new chapter is unfolding—one linking the largest exchange in the world, a Trump-backed financial venture, and a $2 billion deal from the Gulf.

Stablecoin with Political Origins

In early 2025, a newly established financial company entered the cryptocurrency space: World Liberty Financial, reportedly founded by members of the Trump family. Initially, there were only a few vague press releases about building a "free market digital financial system."

That changed in March when the company announced the launch of USD1, a stablecoin pegged to the U.S. dollar designed for large-scale organizational payment purposes. While launching stablecoins is currently quite common, this currency quickly attracted attention—not for its nature but for who built it.

Binance Builds Infrastructure

According to investigations by publications such as The Daily Beast and CoinDesk, Binance—still the largest cryptocurrency exchange in the world—has written smart contract code supporting USD1. This is not a superficial collaboration; it is a deep technical involvement.

Binance also promotes USD1 through its channels, and blockchain data shows that over 90% of USD1 tokens are currently held in wallets linked to Binance. In fact, Binance is both the primary issuer and the main ecosystem for the use of this stablecoin.

Settlement Agreement for $2 Billion

The relationship between Binance and World Liberty became clearer in May 2025, when Eric Trump publicly confirmed that USD1 would be used to pay for a $2 billion investment from Abu Dhabi's MGX fund into Binance.

Although little information is available about MGX's internal structure, it is widely regarded as a government-backed investment fund with close ties to Gulf interests. The timing of this deal is crucial—Binance has recently undergone a significant regulatory overhaul, including a $4.3 billion settlement with the U.S. government and a leadership transfer from Changpeng Zhao to Richard Teng.

The fact that such a significant investment is made using a newly launched stablecoin raises serious questions—not only about the legality of the currency but also about the broader implications for market governance.

Who Controls USD1

Stablecoins are often trusted due to transparency, audited reserves, and clear regulations. However, USD1 remains quite ambiguous. The origins of this currency have not been widely disclosed, and the concentration of tokens in a single ecosystem undermines the idea of decentralized usage.

More concerning is the connection of two key stakeholders: Binance, a company under close global scrutiny, and the Trump family, with its long-standing political ties and influence.

Critics have raised the possibility that USD1 could be more than just a financial tool—perhaps even a strategic asset for those looking to shape the digital financial infrastructure with minimal oversight.

Regulatory and Industry Response

Given the involved entities, it is no surprise that USD1 is facing opposition. U.S. regulators may raise concerns about conflicts of interest, especially if the Trump family's political ties overlap with digital asset activities.

For Binance, this involvement further adds to the list of questions about transparency and accountability. After years of operating with limited regulatory cooperation, the exchange is trying to pivot towards regulatory compliance—but partnerships like this complicate that narrative.

In the cryptocurrency industry, opinions are quite polarized. Some see USD1 as a prime example of efficient capital liquidity outside the traditional banking system. Others worry that this currency could become a loophole for uncontrolled financial activities with limited checks and balances.

Why Is This Case Important?

Stablecoins are the backbone of the cryptocurrency economy—key factors for liquidity, trading, and DeFi operations. But they also need trust. When reserve data is unclear, there is a high concentration of usage, and political figures are involved, questions will quickly arise.

USD1 is not just a new token but also a signal that the next phase of stablecoin development may be defined less by technical innovation and more by political capital and institutional influence.

At a time when regulators are tightening their grip on cryptocurrency globally, a stablecoin like USD1, developed by Binance and linked to a high-profile political family in the U.S., risks becoming a target of scrutiny.

Looking Ahead

Whether USD1 will extend beyond the Binance ecosystem or fade under pressure remains to be seen. But it has exposed a complex web of influence—where cryptocurrency, politics, and national capital intersect.

This case could soon set a precedent: not only regarding how stablecoins are launched and used but also about how the legal framework will handle currencies tied to both geopolitical and financial power centers.