Donald Trump’s Stablecoin Powers $2 Billion Binance Investment by Abu Dhabi Firm
By Federico Maccioni
Dubai, UAE — May 1, 2025 — A stablecoin developed by World Liberty Financial, a cryptocurrency venture associated with former President Donald Trump, has been selected for use in a significant $2 billion investment by an Abu Dhabi-based firm in Binance, the world’s largest cryptocurrency exchange. This announcement was made by Zach Witkoff, a co-founder of World Liberty, during a cryptocurrency conference in Dubai on Thursday.
World Liberty Financial unveiled its stablecoin, named USD1, in March 2025. The stablecoin is pegged to the U.S. dollar and is backed by U.S. Treasuries and other cash equivalents. Witkoff expressed his enthusiasm, stating, "We are excited to announce today that USD1 has been selected as the official stablecoin to close MGX’s $2 billion investment in Binance." He is also the son of Steve Witkoff, Trump’s special envoy to the Middle East.
The investment by MGX, an Abu Dhabi investment firm, marks a milestone for World Liberty as it continues to establish its presence in the expanding cryptocurrency market. However, the venture has not been without criticism. Democratic Senator Elizabeth Warren has been vocal against the implications of Trump’s involvement in the cryptocurrency sector, accusing both Trump and the Republican-controlled Senate of potential corruption. “A fund backed by a foreign government just announced it will make a $2 billion deal using Donald Trump’s stablecoins,” she stated, further highlighting ongoing legislative discussions regarding stablecoins.
The White House and World Liberty Financial did not provide immediate comments regarding the criticism. The adoptive use of USD1 in this high-profile investment underscores World Liberty’s increasing influence in the global crypto market and its strategic ties to Binance, given that USD1 is issued on Binance’s blockchain.
USD1 has experienced rapid growth, with its circulating value estimated at around $2.1 billion, according to CoinMarketCap. However, the identity of its primary holders remains mostly undisclosed. Recent analyses from crypto research firm Arkham revealed that an anonymous cryptocurrency wallet acquired $2 billion worth of USD1 between April 16 and 29, but the wallet’s owner remains unknown.
Zach Witkoff was also seen in the company of Binance’s former CEO Changpeng Zhao during the conference in Abu Dhabi, where Zhao was previously incarcerated for violating U.S. money laundering laws. Despite stepping down in 2023 post-settlement over these charges, Zhao remains a major shareholder of Binance.
In related news, Witkoff announced plans for integrating USD1 into the Tron blockchain, which is backed by entrepreneur Justin Sun, another major investor in World Liberty Financial who has reportedly committed around $75 million to the initiative. Sun was previously embroiled in a U.S. securities fraud lawsuit, which the Securities and Exchange Commission suspended earlier this year, citing public interest.
The panel discussions at the Dubai conference included prominent figures in the cryptocurrency world, including Eric Trump, demonstrating the ongoing engagement of Trump’s family in the crypto industry amidst evolving federal rules regarding digital currencies. Donald Trump, who once pledged to be the "crypto president," remains distanced from day-to-day business decisions, having delegated management of his assets to family members prior to his presidential return.
As the landscape of cryptocurrency continues to evolve, World Liberty Financial’s foray into stablecoins and collaborations with global investment firms like MGX raises questions about the intersection of finance, politics, and technology.
For further information, please contact Reuters for additional insights and updates.
Reporting by Federico Maccioni; additional reporting by Tom Wilson in London; Writing by Ahmed Elimam and Tommy Reggiori Wilkes; Editing by Susan Fenton, Louise Heavens and Leslie Adler.
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