A stablecoin launched by Donald Trump’s World Liberty Financial (WLFI) venture is being utilized by an Abu Dhabi investment firm for a substantial $2 billion investment in the crypto exchange Binance. This announcement was made by one of the co-founders of World Liberty during a crypto conference in Dubai.
World Liberty Financial USD1 Emerges As Fastest-Growing Stablecoin
World Liberty Financial aims to democratize access to financial services by eliminating intermediaries like banks. Earlier this year, the company announced the upcoming launch of USD1, a dollar-pegged stablecoin that will be backed by US Treasuries, cash, and other equivalents.
Zach Witkoff, a co-founder of World Liberty Financial and son of Trump’s envoy Steve Witkoff, confirmed that USD1 would facilitate the closing of the investment by MGX, the Abu Dhabi-based firm, into Binance.
Witkoff expressed enthusiasm about the partnership, 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.”
As of recent reports, the circulation of USD1 reached approximately $2.1 billion, marking it as one of the fastest-growing stablecoins in the market. However, the identities of its major holders remain largely undisclosed.
Notably, an anonymous cryptocurrency wallet reportedly received $2 billion in USD1 between April 16 and April 29, though the owner of this wallet remains unknown.
Adding to the intrigue, Binance founder and former CEO Changpeng Zhao met with Zach Witkoff and his fellow co-founders in Abu Dhabi, sharing a photo on social media that highlighted their connection.
Zhao, who stepped down from his role at Binance amid a $4.3 billion settlement and four month imprisonment with US authorities over money laundering violations last year, continues to hold a significant stake in the exchange.
Potential Conflicts Of Interest
In addition to the Binance investment, Witkoff announced that World Liberty Financial’s USD1 stablecoin would soon be integrated into the Tron blockchain, which is associated with Hong Kong-based crypto entrepreneur Justin Sun.
Sun is known as the largest investor in World Liberty Financial, having invested at least $75 million into the venture. His involvement comes amid ongoing legal challenges, as he faced a US securities fraud lawsuit that was recently paused by the SEC due to public interest considerations.
At the conference, Sun moderated a panel featuring Witkoff and Eric Trump, Donald Trump’s son, further intertwining the Trump family’s interests with the burgeoning world of cryptocurrency.
President Trump, who has positioned himself as a “crypto president,” has expressed intentions to reform US cryptocurrency regulations, though his business interests, including World Liberty Financial, have attracted scrutiny regarding potential conflicts of interest.
Despite these concerns, Trump’s company has stated that he has relinquished day-to-day management of his assets to his children, ensuring a separation between his political pursuits and business operations.
Featured image from DALL-E, chart from TradingView.com
