A stablecoin introduced by Donald Trump's World Liberty Financial cryptocurrency initiative is being utilised by an investment firm in Abu Dhabi for its $2 billion investment in the crypto exchange Binance, a co-founder of World Liberty stated on Thursday. It's the most recent in a series of cryptocurrency initiatives by the Trump family, including a "meme coin" that was introduced in January, which has sparked criticism from political foes and government ethics specialists concerning possible conflicts of interest. World Liberty, which seeks to enable individuals to access financial services without intermediaries such as banks, announced in March its plan to introduce USD1, a stablecoin pegged to the dollar and backed by U.S. Treasuries, dollars, and other cash equivalents.
At a crypto conference in Dubai, Zach Witkoff, co-founder of World Liberty, announced that USD1 would facilitate the $2 billion investment from Abu Dhabi's MGX into Binance, the largest crypto exchange globally. "We are thrilled to reveal today that USD1 has been chosen as the official stablecoin to finalise MGX's $2 billion investment in Binance," said Witkoff, son of Trump's special envoy to the Middle East, Steve Witkoff.
Democratic Senator Elizabeth Warren strongly condemned the initiative and the upcoming U.S. legislation regarding stablecoins in front of the Republican-led Senate. A fund "supported by a foreign government just revealed it will engage in a $2 billion transaction utilising Donald Trump’s stablecoins," stated Warren, a member of the U.S. Senate Banking Committee. In the meantime, the Senate is preparing to approve the 'GENIUS' Act - stablecoin legislation that will facilitate the President and his family's ability to enrich themselves. "This is wrongdoing, and no senator ought to endorse it," he added.
The White House and World Liberty Financial did not promptly reply to requests for comments. The inclusion of USD1 in the agreement underscores World Liberty's increasing influence in the international crypto market and its connections to Binance. USD1 is created on the Binance blockchain. Stablecoins are becoming a more profitable component in worldwide crypto trading. The entities that issue them - generally benefit by gaining interest from the Treasuries and other underlying assets. According to data from CoinMarketCap, the circulation value of USD1 hit approximately $2.1 billion on Wednesday, marking it as one of the quickest-growing stablecoins. The identity of its key holders, however, is still uncertain. A nameless cryptocurrency wallet containing $2 billion in USD1 acquired the funds from April 16 to 29, based on information from the crypto research company Arkham. Reuters was unable to determine the owner of this wallet.
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Changpeng Zhao, the founder and ex-CEO of Binance, who was jailed in the U.S. last year after admitting to breaking U.S. "It was wonderful to visit our friends," Zhao commented in response on Abu Dhabi, linking to the photo and tagging Witkoff. Zhao, who resigned from his position at Binance in 2023 as part of a $4.3 billion agreement with the U.S. related to illegal finance accusations, still holds a significant stake in Binance. Independently, Zach Witkoff revealed that USD1 would be incorporated into Tron, the blockchain created by Hong Kong's crypto mogul Justin Sun. Sun is the largest known investor in World Liberty and serves as an advisor to the venture, based on his social media updates, having invested a minimum of $75 million into the initiative.
At the moment of his initial investment in World Liberty, Sun was battling a U.S. securities fraud lawsuit. In February, the U.S. Securities and Exchange Commission halted its case against him, referencing public interest. Sun moderated the panel featuring Witkoff on Thursday, where Trump's son, Eric Trump, was also present. The U.S. president, who ran on commitments to become a crypto president, has vowed to reform federal regulations on cryptocurrency. Trump delegated the management of his assets to his children prior to his return to the White House, and he will not be involved in daily decision-making, his company stated.
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