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4d ago

Trump Family Stablecoin Facilitates $2 Billion UAE-Backed Binance Investment

The Trump-owned World Liberty Financial's USD1 stablecoin will be used by Abu Dhabi-backed MGX for a major transaction, raising ethical concerns as Congress debates stablecoin regulation.

President Donald Trump welcomes Abu Dhabi's Crown Prince Sheikh Mohammed bin Zayed Al Nahyan to the White House in Washington, Monday, May 15, 2017.
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Overview

  • World Liberty Financial, owned by the Trump family, announced that its USD1 stablecoin will be used by UAE-backed MGX to complete a $2 billion investment in Binance, the world's largest cryptocurrency exchange.
  • The Trump family holds a 60% stake in World Liberty Financial, with President Trump listed as the firm's 'chief crypto advocate' and his sons as 'web3 ambassadors.'
  • Critics, including Senator Elizabeth Warren, have raised conflict-of-interest concerns, citing the Trump family's financial ties to foreign governments and upcoming legislation on stablecoin regulation.
  • The deal highlights the financial benefits of stablecoin issuance, with the $2 billion expansion of USD1 potentially generating approximately $85 million annually in interest income for World Liberty Financial.
  • The announcement comes ahead of President Trump's state visit to the Gulf region and as Congress considers the GENIUS Act and STABLE Act, legislation that could impact stablecoin issuers like World Liberty Financial.