Trump-Backed Stablecoin Facilitates $2 Billion Investment in Binance

May 7, 2025

In a significant development for the cryptocurrency industry, a stablecoin launched by former U.S. President Donald Trump's venture, World Liberty Financial, is being utilized by Abu Dhabi-backed investment firm MGX for a substantial $2 billion investment in Binance, the world's largest cryptocurrency exchange. This announcement was made by World Liberty Financial co-founder Zach Witkoff at the TOKEN2049 conference in Dubai.

The stablecoin, named USD1, is pegged to the U.S. dollar and fully backed by U.S. Treasuries, cash, and other equivalents to maintain a stable $1 value. This strategic move signifies a deepening relationship between Binance and the United Arab Emirates, highlighting the growing institutional interest in the crypto sector.

Former crypto skeptic and current U.S. President Donald Trump has recently expressed strong support for the cryptocurrency industry, including easing regulatory constraints and launching his own digital currency. This marks a significant shift in U.S. policy following the industry's downturn in 2022.

Market Implications

This investment underscores the increasing institutional adoption of cryptocurrencies and stablecoins, potentially paving the way for more significant collaborations between traditional financial institutions and crypto platforms. It also reflects the evolving regulatory landscape and the growing acceptance of digital assets in mainstream finance.

Note: The above information is based on the latest available data as of May 7, 2025.#TradeStories $