In one of many extra surreal twists within the ongoing crypto-political cleaning soap opera, a $2 billion funding deal in Binance simply received an additional dose of intrigue. An Abu Dhabi funding agency is shopping for a minority stake within the world’s greatest crypto change, and the deal is being executed in a stablecoin backed by none aside from the Trump household. Sure, actually. This marks the primary time a Trump-linked stablecoin has been utilized in a high-profile crypto change deal.
The token, USD1, is issued by World Liberty Monetary, a comparatively new participant on the stablecoin scene that comes with a lineup of Trump-branded roles, from “DeFi visionary” Barron Trump to “Web3 ambassadors” Eric and Don Jr. The deal was revealed at TOKEN2049 Dubai and is already elevating a ton of eyebrows.
The Gamers and the Deal
The agency behind the funding is MGX, chaired by Sheikh Tahnoon bin Zayed Al Nahyan, who additionally occurs to be the UAE’s nationwide safety adviser. MGX isn’t new to throwing cash at daring tech ventures. They’ve beforehand linked up with BlackRock and Microsoft on a $30 billion AI fund. This time, they’re going large on crypto.
Trump’s World Liberty Monetary says Abu Dhabi’s MGX fund is making a $2B funding in Binance utilizing World Liberty’s USD1 stablecoin, elevating moral considerations (@yaffebellany / New York Instances)
— Techmeme (@Techmeme) Might 2, 2025
The twist? As an alternative of wiring over U.S. {dollars} or utilizing a main stablecoin like USDC, MGX is utilizing USD1, a comparatively obscure stablecoin till now, launched final 12 months by World Liberty Monetary. That firm was co-founded by Zach Witkoff, son of actual property developer and Trump ally Steve Witkoff. And the Trump household’s involvement is something however delicate.
In accordance with firm supplies, President Donald Trump is listed as “chief crypto advocate.” Eric and Don Jr. are “Web3 ambassadors,” and Barron is, no joke, the “DeFi visionary.” It feels like parody, however it’s actual. USD1 is pegged to the greenback and supposedly backed by U.S. Treasuries, like different stablecoins that intention to maintain a 1:1 worth with the buck.
.@worldlibertyfi pic.twitter.com/mwhVIzPJyq
— Donald J. Trump (@realDonaldTrump) August 29, 2024
Why This Is Elevating Eyebrows
Let’s be clear, $2 billion isn’t pocket change. Using a politically-linked stablecoin to maneuver that type of cash right into a crypto change that not too long ago received slammed with felony fees within the U.S. raises all kinds of purple flags.
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Binance, in fact, pleaded responsible in 2023 to violating U.S. anti-money-laundering legal guidelines. It agreed to billions in penalties and has been below strict federal monitoring ever since. So the concept {that a} Trump-connected asset is now a part of Binance’s rebound story? That’s sure to draw consideration and certain investigation.
Critics are additionally pointing out the apparent battle of curiosity considerations. If the Trump household income from this stablecoin and a deal involving Binance, how does that have an effect on the notion of impartiality, particularly with Trump operating for workplace once more?
Add in that some patrons of USD1 tokens reportedly embody overseas nationals who wouldn’t be allowed to donate to U.S. political campaigns, and the moral maze will get much more difficult.
Conclusion
A $2 billion crypto funding was at all times going to make headlines. However doing it by means of a stablecoin branded with the Trump title pushes this story into completely uncharted territory. It’s a reminder that in crypto, politics, and finance, the strains are getting blurrier by the day. Whether or not this transfer holds as much as authorized scrutiny is one other query entirely, one that regulators might quickly be compelled to reply.
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Key Takeaways
- An Abu Dhabi agency, MGX, is investing $2 billion in Binance utilizing USD1, a Trump-linked stablecoin issued by World Liberty Monetary.
- USD1 is pegged to the U.S. greenback and promoted by the Trump household, with roles like “chief crypto advocate” (Donald Trump) and “DeFi visionary” (Barron Trump).
- The deal was unveiled at TOKEN2049 Dubai and has sparked moral considerations because of the Trump household’s involvement and Trump’s lively political marketing campaign.
- Binance, which pleaded responsible to U.S. AML violations in 2023, continues to be below federal oversight, including regulatory stress to the already controversial deal.
- Critics warn using a politically branded stablecoin in a multibillion-dollar transaction may set off authorized and conflict-of-interest investigations.
The publish Trump-Linked Stablecoin Used in $2B Binance Deal With Abu Dhabi Firm appeared first on 99Bitcoins.
