Trump-linked stablecoin to facilitate $2 billion Binance investment
2nd May 2025 – (Abu Dhabi) USD1, a stablecoin launched by Donald Trump’s World Liberty Financial cryptocurrency venture, will be used by Abu Dhabi investment firm MGX for its $2 billion investment in crypto exchange Binance, according to a World Liberty co-founder.
World Liberty, which aims to provide access to financial services without traditional intermediaries, announced in March that it would launch USD1, a dollar-pegged stablecoin backed by U.S. Treasuries, dollars, and other cash equivalents. Speaking at a crypto conference in Dubai, Zach Witkoff stated that USD1 would be used to finalize MGX’s $2 billion investment in Binance, the world’s largest crypto exchange.
“We are excited to announce today that USD1 has been selected as the official stablecoin to close MGX’s $2 billion investment in Binance,” said Mr. Witkoff, son of Steve Witkoff, a Trump envoy.
The use of USD1 in the deal underscores World Liberty’s increasing influence in the global crypto industry and its ties to Binance. USD1 is issued on Binance’s blockchain.
Stablecoins are an increasingly important part of global crypto trading, with issuers typically profiting by earning interest from the treasuries and other assets backing them.
The value of USD1 in circulation reached approximately $2.1 billion on Wednesday, according to CoinMarketCap data, making it one of the fastest-growing stablecoins. However, the identity of its major holders remains unclear. An anonymous cryptocurrency wallet holding $2 billion worth of USD1 received the funds between April 16 and 29, according to data from crypto research firm Arkham. Reuters was unable to determine the owner of this wallet.
Changpeng Zhao, the Binance founder and former CEO, who was incarcerated in the U.S. last year after pleading guilty to violating U.S. laws against money laundering, met Zach Witkoff and two other World Liberty co-founders in Abu Dhabi, according to a photo posted on social media site X on Sunday.
“It was great to see our friends” in Abu Dhabi, Mr. Zhao posted in response to the photo, tagging Mr. Witkoff.