Controversy brews as MGX selects Donald Trump’s USD1 stablecoin for massive Binance investment, raising questions over ethics, foreign influence, and crypto regulation in Washington.
A stablecoin tied to former U.S. President Donald Trump has been chosen as the transactional currency in a $2 billion investment by Abu Dhabi’s MGX into the world’s largest cryptocurrency exchange, Binance — spotlighting the deepening entanglement of politics, finance, and crypto.
At a crypto conference in Dubai on Thursday, World Liberty Financial co-founder Zach Witkoff announced that USD1, the stablecoin issued by the Trump-affiliated venture, would facilitate the entire deal between MGX and Binance. “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.
The move underscores the rapid ascent of USD1 in the global digital currency ecosystem. Pegged to the U.S. dollar and backed by U.S. Treasuries and cash equivalents, USD1 is issued on Binance’s blockchain and has quickly grown in circulation — reaching approximately $2.1 billion as of Wednesday, according to CoinMarketCap.
A Family Affair in Crypto
World Liberty Financial, which promotes financial independence from traditional banking intermediaries, has garnered attention for its deep Trump family connections. Zach Witkoff is the son of Steve Witkoff, Donald Trump’s former special envoy to the Middle East. At Thursday’s panel, moderated by controversial crypto entrepreneur Justin Sun, Eric Trump also appeared on stage in support of the project.
This deal is the latest in a string of Trump-related crypto ventures. Earlier this year, a Trump-themed meme coin sparked backlash over possible self-enrichment and blurred ethical lines — concerns that resurfaced with Thursday’s announcement.
The controversy escalated in Washington. Senator Elizabeth Warren sharply condemned the deal: “A fund backed by a foreign government just announced it will make a $2 billion deal using Donald Trump’s stablecoins,” she said in a statement. “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.”
The White House and World Liberty Financial have yet to respond to requests for comment.
Regulatory Shadows and Crypto Power Plays
The rising prominence of USD1 also highlights World Liberty’s growing ties to Binance, which continues to recover from a turbulent regulatory year. Its founder and former CEO, Changpeng Zhao (CZ), stepped down as part of a $4.3 billion settlement with U.S. authorities over money laundering violations. Zhao, who retains a major stake in Binance, was photographed recently in Abu Dhabi with Zach Witkoff and World Liberty co-founders, further fueling speculation over close coordination.
Meanwhile, blockchain data from Arkham Intelligence shows that a single anonymous wallet received nearly $2 billion worth of USD1 between April 16 and 29 — but the ownership of that wallet remains unverified.
Expansion to Tron and Sun’s Influence
In a strategic move to broaden USD1’s footprint, Witkoff also announced integration with Tron — the blockchain network spearheaded by Justin Sun, who is also the largest known investor in World Liberty, having poured at least $75 million into the venture. Despite facing a U.S. securities fraud lawsuit, now paused, Sun maintains his influence in global crypto circles and acts as an adviser to the Trump-affiliated initiative.
Sun, who moderated the Dubai panel, has not shied away from publicizing his partnership with the Trumps and World Liberty, further blurring the line between politics, private gain, and decentralized finance.
Trump’s “Crypto President” Promise
Trump, who has returned to the White House for a second term, previously handed over day-to-day management of his assets to his children. His campaign promised to make him the “crypto president,” and he has pledged a sweeping overhaul of federal crypto regulations. While Trump is not officially involved in World Liberty’s daily operations, the growing prominence of his name and associated products in the crypto sector is raising red flags for ethics watchdogs and lawmakers alike.
As regulatory scrutiny intensifies and Congress debates the GENIUS Act — which could reshape stablecoin oversight — the role of USD1 in international finance may mark a turning point in the future of politically-linked crypto ventures.
