Zach Witkoff, co-founder of World Liberty Financial (WLF), led by the Trump family, recently announced that its new stablecoin USD1 will be used to complete a strategic investment of up to $2 billion by Abu Dhabi investment giant MGX in the exchange Binance. This statement not only markets the financing use case of USD1 but also helps establish its presence in the UAE.
From the United States to Dubai: USD1 backs a $2 billion investment project
Zach Witkoff revealed this news at the Token2049 summit held in Dubai recently. This public discussion was participated by Witkoff, TRON founder Justin Sun, and Eric Trump, the eldest son of former President Donald Trump:
MGX's hefty investment in Binance will be settled through WLFI's newly launched stablecoin USD1.
Although it has not yet been confirmed whether this investment will also use other stablecoins, USD1 has been designated as the 'official stablecoin' for this investment.
It is reported that MGX's strategic investment occurred in March this year, at which time it was only revealed that it would be settled in stablecoins without specifying the type. As a platform with nearly 40% market share, over 260 million users, and cumulative trading volume exceeding $100 trillion, MGX's investment undoubtedly strongly endorses Binance's growth potential.
(UAE MGX invests $2 billion in Binance, creating the largest single investment record in the crypto industry)
Eric Trump's Challenge: Banks Will Be Eliminated If They Don't Change
At the same time, Eric Trump expressed dissatisfaction with the traditional financial system during the discussion: 'Our system is broken, and modern finance is completely incapacitated.'
Banks will regret their past suppression of the crypto field and political figures. I believe the crypto world will take over the big banks and leave them far behind.
He further pointed out that traditional banks rely on fees for their livelihood, while crypto technology is eliminating these intermediary costs: 'Financial institutions will become as extinct as film cameras because their functions are being completely eliminated.'
Eric Trump praised the UAE's open attitude towards innovative projects while also criticizing Europe's conservative stance: 'The United States is 1,000 times stronger than Europe.'
(The UAE Sovereign Fund is preparing a UAE Dirham stablecoin, which will reportedly be issued by Abu Dhabi Bank)
WLFI and USD1: The Trump family's blueprint for a crypto empire
WLFI is a DeFi platform co-founded by Trump and his three sons. Since the launch of the WLFI token in October 2024, it has attracted significant market attention. In March of this year, it further partnered with custodian BitGo to launch the USD1 stablecoin, claiming full reserves supported by cash, short-term U.S. Treasury bills, and other cash equivalents.
(Is the WLFI airdrop of USD1 and BitGo's launch of lock-up staking services paving the way for WLFI to enter the institutional market?)
A few days ago, WLFI signed a memorandum of cooperation with the Pakistan Cryptocurrency Committee (PCC). As the government agency regulating the blockchain industry in the country, former Binance CEO Zhao Changpeng (CZ) has also joined PCC as a strategic advisor, further strengthening WLFI's political and industrial network in the global market.
The era of stablecoin wars has arrived: How will USD1 break through USDT and USDC?
Currently, the stablecoin market is dominated by Tether's USDT and Circle's USDC, with a total market capitalization of $211 billion, accounting for 91% of the market share. USD1 ranks seventh by market capitalization and will face fierce competition if it wants to break through.
As an essential infrastructure in the fields of DeFi, asset tokenization products (RWA), or payment applications (PayFi), crypto KOL @yuyue_chris is optimistic about the advantages of USD1 across many application layers, benchmarked against Ethena Labs' USDe, believing that if WLFI opens at a price of $0.5, the fully diluted valuation (FDV) will reach $5 billion, with potential that cannot be underestimated.
MGX's investment not only highlights the practical application potential of stablecoins but also opens a door for WLFI into the institutional and even mainstream markets. As the global financial system increasingly relies on blockchain and digital dollar tools, whether USD1 can break through the existing stablecoin dominance will be a major focus of market attention.
This article reports that WLFI is based in Dubai, announcing that USD1 has become the official stablecoin for the UAE's $2 billion investment in Binance, first appearing in Chain News ABMedia.
