Trump Family Stablecoin Used for MGX’s $2 Billion Binance Investment
The Trump family’s new stablecoin was reportedly used for a $2 billion investment into Binance by Abu Dhabi’s MGX.
As Bloomberg News reported Thursday (May 1), the actual investment happened in March, though the stablecoin in question was not disclosed.
Zach Witkoff, co-founder of World Liberty Financial — the Trump family digital asset operation — said Thursday that Binance and MGX will use World Liberty’s USD1 stablecoin for the deal.
“We are excited to announce today that USD1 has been selected as the official stablecoin to close MGX’s $2 billion investment in Binance. We thank MGX and Binance for their trust in us,” Witkoff said on a panel at the Token2049 conference in Dubai, where he was joined by Eric Trump, son of the president.
Although USD1 has not yet been listed on centralized cryptocurrency exchanges for trading, the coin has a market value of around $2.1 billion, Bloomberg added, citing CoinGecko data.
World Liberty announced plans to launch the USD1 coin in March, part of a string of crypto-related ventures tied to the Trump family.
Days earlier, Trump Media, owner of the president’s Truth Social platform, announced it was teaming with Crypto.com to launch a series of exchange traded funds (ETFs).
Eric Trump and Donald Trump Jr. are also backing American Bitcoin Corp., which will focus on Bitcoin mining and “strategic bitcoin reserve development.”
The Trump-connected companies are increasing their exposure to digital assets as the president lobbies to make the U.S. a more crypto-friendly environment. Since taking office earlier this year, Trump has taken measures like signing executive orders calling for the creation of a national bitcoin reserve, and hosting a gathering of crypto execs at the White House.
There’s also a push among congressional Republicans to advance stablecoin legislation. As PYMNTS wrote earlier this week, the Guiding and Establishing National Innovation for U.S. Stablecoins of 2025 (GENIUS) Act has emerged as a beacon of hope for crypto companies seeking clarity. If signed into law, it would become the first comprehensive framework in the United States for regulating stablecoins.
“There’s certainly a change in how the administration views the digital assets industry,” Dan Boyle, partner at Boies Schiller Flexner, said in a recent interview with PYMNTS. “This is not a confrontational posture.”
Interest in stablecoins is increasing as federal agencies, including the Securities and Exchange Commission, Federal Deposit Insurance Corporation and the Federal Reserve, work to clarify their positions, rolling back or softening earlier warnings and paving the way for further integration of crypto assets into the mainstream financial system.
“I think the largest banks will succeed as stablecoin issuers,” former Assistant Secretary of the Treasury Amias Gerety told PYMNTS in March.
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