A stablecoin created by Donald Trump’s World Liberty Financial has been selected for a $2 billion investment by an Abu Dhabi firm into the cryptocurrency exchange Binance, according to one of the company’s co-founders.
The digital asset, called USD1, is the latest in a growing list of Trump-affiliated cryptocurrency ventures. Earlier this year, the former president’s circle launched a meme coin that drew criticism from ethics experts and political adversaries, citing potential conflicts of interest.
World Liberty Financial introduced USD1 in March, describing it as a dollar-pegged stablecoin backed by U.S. Treasuries, cash, and cash equivalents. The company markets itself as a way to provide financial services without traditional intermediaries such as banks.
Speaking at a cryptocurrency conference in Dubai, World Liberty co-founder Zach Witkoff announced that USD1 would be used to finalize MGX’s $2 billion investment in Binance. MGX is an investment fund based in Abu Dhabi.
“We are excited to announce today that USD1 has been selected as the official stablecoin to close MGX’s $2 billion investment in Binance,” Witkoff said. He is the son of Steve Witkoff, who served as Trump’s special envoy to the Middle East.
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The announcement immediately sparked political backlash in Washington. Senator Elizabeth Warren, a Democrat on the Senate Banking Committee, condemned the arrangement. She criticized the deal and the pending “GENIUS Act,” a stablecoin regulation bill currently being reviewed in the Republican-controlled Senate.
“A fund backed by a foreign government just announced it will make a $2 billion deal using Donald Trump’s stablecoins,” Warren said. “Meanwhile, the Senate is gearing up to pass the ‘GENIUS’ Act—stablecoin legislation 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.”
Neither the White House nor World Liberty Financial responded immediately to requests for comment.
The selection of USD1 for the high-profile transaction signals the rising influence of World Liberty Financial within the global crypto ecosystem. USD1 is issued on the Binance blockchain, further deepening the company’s ties to the world’s largest cryptocurrency exchange.
Stablecoins like USD1 play an increasingly important role in crypto trading. Their issuers typically earn profits by investing the underlying reserves in interest-bearing assets like U.S. Treasuries.
As of Wednesday, USD1 had reached a circulation of approximately $2.1 billion, according to data from CoinMarketCap, making it one of the fastest-growing stablecoins on the market. However, the identities of its major holders remain unknown. Research firm Arkham reported that a single anonymous wallet received $2 billion in USD1 between April 16 and April 29. Reuters was unable to verify the ownership of that wallet.
In a separate development, Binance founder and former CEO Changpeng Zhao met with Zach Witkoff and two other World Liberty co-founders in Abu Dhabi. A photo of the meeting was posted Sunday on social media platform X. Zhao replied to the post, writing, “It was great to see our friends,” and tagged Witkoff in his response.
Zhao stepped down from his role at Binance in 2023 as part of a $4.3 billion settlement with U.S. authorities over violations of anti-money laundering laws. He remains a key shareholder in the company.
During the Dubai conference, Witkoff also announced that USD1 would be integrated into the Tron blockchain, led by Hong Kong-based entrepreneur Justin Sun. Sun is the largest known investor in World Liberty Financial and serves as an adviser to the project. He has reportedly invested at least $75 million into the venture.
Sun, who is currently facing a U.S. securities fraud lawsuit, moderated the panel at the conference where Witkoff spoke. Trump’s son, Eric Trump, also appeared on stage during the discussion. The U.S. Securities and Exchange Commission paused its case against Sun in February, citing public interest considerations.
President Trump, who previously described himself as a “crypto president,” has pledged to overhaul federal cryptocurrency regulations. According to statements from his company, Trump handed over the management of his business assets to his children upon returning to the White House and will not be involved in daily operations.
Source: reuters
