Abu Dhabi invests $2 billion in Binance using Trump's stablecoin

In March 2025, Abu Dhabi's MGX, an artificial intelligence fund, announced it would use a stablecoin from World Liberty Financial, a venture linked to Donald Trump, to complete a significant $2 billion investment in the cryptocurrency exchange Binance. This move highlights the growing influence of Trump-backed financial ventures in the global cryptocurrency market. Zach Witkoff, a co-founder of World Liberty Financial and also the son of Trump's special envoy to the Middle East, revealed the use of USD1, a dollar-pegged stablecoin, during a panel discussion at a crypto conference in Dubai. The stablecoin is backed by U.S. Treasuries and aims to facilitate access to financial services beyond traditional banking systems. The investment into Binance, the largest crypto exchange in the world, underscores not only the backing of a prominent political figure but also reflects current trends in crypto trading, particularly the increasing relevance of stablecoins in global transactions. The use of USD1 for the investment brings to light the controversies surrounding not only cryptocurrencies but also the legislative actions being proposed in the U.S. concerning stablecoin regulations. Senator Elizabeth Warren made critical remarks about the implications of a foreign-backed fund using Trump's stablecoin while the U.S. Senate deliberates on a new stablecoin legislation called the 'GENIUS' Act, suggesting that it could serve to benefit Trump's interests at the expense of broader public accountability. Further complicating the landscape, the partnership with Binance raises questions about regulatory compliance and financial ethics, particularly given past issues faced by Binance founder Changpeng Zhao regarding illicit finance charges. This investment also raises concerns among lawmakers regarding the influence of foreign capital in U.S. financial markets and potential conflicts of interest involving public officials. The rapid circulation of the USD1 stablecoin, reportedly reaching about $2.1 billion recently, illustrates the growing acceptance and usage of stablecoins in global financial systems, which are increasingly seen as critical infrastructure in crypto trading. Amidst these developments, the Trump administration has expressed intentions to reshape U.S. policy on crypto, which can significantly impact the future governance of cryptocurrencies both domestically and in the international arena. With the White House, along with World Liberty Financial, not immediately responding to inquiries about this investment, it remains to be seen how the relationship between political figures, their financial interests, and emerging crypto markets will evolve moving forward, especially with ongoing regulatory scrutiny and public discourse surrounding the implications of such financial interactions.