An Emirati fund intends to inject 2 billion dollars into the Binance platform using a stablecoin backed by the Trump family.
In a controversial move, an Emirati investment fund called 'MGX', backed by the Abu Dhabi government, announced its intention to invest 2 billion dollars in the global cryptocurrency trading platform Binance, using a new stablecoin known as USD1, backed by a company linked to former U.S. President Donald Trump’s family.
According to Western media reports, the deal was announced during the Token2049 conference in Dubai, where Zack Witkoff, co-founder of World Liberty Financial, stated that the Emirati fund would use the stablecoin USD1 to acquire a minority stake in Binance, indicating a new development in the financing relationships between the Gulf and the West.
World Liberty Financial is a newly established entity in 2024, featuring Eric Trump and Donald Trump Jr. on its board, while their father, former President Donald Trump, is referred to as the 'number one advocate for cryptocurrencies' in the company. According to the company's website, USD1 aims to provide a 'conservative' political alternative to traditional stablecoins like USDT and USDC.
This deal comes at a sensitive time for Binance, which has been under intense scrutiny from U.S. authorities and paid a settlement of 4.3 billion dollars in 2023 due to allegations of violating anti-money laundering laws. The entry of an Emirati fund at this level would provide Binance with a significant financial boost, but it also raises questions about political influence and potential conflicts of interest, especially with the direct involvement of the Trump family.
