Trump's crypto company is chosen for a $2 billion deal
Eric Trump announced at the Token2049 event on May 1st that the stablecoin USD1 from World Liberty Financial would be the official stablecoin supporting MGX's $2 billion investment in the cryptocurrency exchange Binance, according to reports.
Binance first reported the deal with the technology investment firm based in Abu Dhabi in March. At that time, World Liberty Financial, backed by Donald Trump, announced plans to launch a dollar-denominated stablecoin with BitGo.
World Liberty's coin, called USD1, aims to maintain a value of $1 and is fully backed by a reserve wallet, according to the initial launch. The agreement between Binance and MGX represents a significant victory for World Liberty, whose USD1 is an underdog in the stablecoin market.
The two leading stablecoins, USDT and USDC, together account for 91% of the total $231 billion market, according to data from The Block. At yesterday's event, the co-founder of Trump's company, Zach Witkoff, hinted that there would be future projects and integrations for the DeFi company. He is the son of the US envoy to the Middle East, Steve Witkoff.
However, Senator Elizabeth Warren stated that the deal raises "red flags." "An obscure fund backed by a foreign government just announced it will make a $2 billion deal using Donald Trump's stablecoins," she wrote in a statement.
"Meanwhile, the Senate is preparing to pass legislation on stablecoins that will make it easier for the president and his family to line their own pockets. This is corruption, and no senator should support it."
Source: CNN Brazil
