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A UAE-backed investment firm, MGX, plans to acquire a $2 billion minority stake in Binance, the world's largest cryptocurrency exchange, using a stablecoin launched by the Trump family's crypto venture, World Liberty Financial. This development was announced at the Token2049 crypto conference in Dubai by World Liberty co-founder Zach Witkoff and Eric Trump. The stablecoin, named USD1, is pegged to the U.S. dollar and backed by U.S. Treasuries and cash equivalents. Malay Mail+12New York Post+12Coinpedia Fintech News+12New York Magazine+3Reuters+3Cyprus Mail+3
This transaction marks a significant intersection of global finance, politics, and cryptocurrency. MGX, chaired by Sheikh Tahnoon bin Zayed Al Nahyan, the UAE's national security adviser, is making its first major foray into digital assets with this investment. The use of USD1 in such a substantial deal underscores the growing influence of stablecoins in large-scale financial transactions. Profit by Pakistan Today+1Malay Mail+199Bitcoins+2Business News Today+2Cyprus Mail+2
However, the deal has raised ethical concerns due to potential conflicts of interest. Former President Donald Trump, who is involved in World Liberty Financial as "chief crypto advocate," may financially benefit from the transaction through interest earned on token deposits. Additionally, some token buyers are foreign nationals barred from U.S. political contributions, raising further legal questions. New York Post+1New York Magazine+1
This investment also comes at a time when 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. Profit by Pakistan Today+2New York Post+2Decrypt+2
The integration of USD1 into such a high-profile investment deal highlights the evolving landscape of cryptocurrency and its increasing entanglement with global political and financial systems
