A stablecoin launched by Donald Trump’s World Liberty Financial (WLF) is being used by Abu Dhabi-based investment firm MGX to facilitate a $2 billion investment in cryptocurrency exchange Binance, according to WLF co-founder Zach Witkoff as reported by Reuters on Thursday.
The stablecoin named “USD1”, is pegged 1:1 to the U.S. dollar and backed by U.S. Treasuries, cash, and other equivalents to maintain a stable $1 value. This development signifies a growing relationship between Binance, the world’s largest crypto exchange, and the United Arab Emirates.
The use of USD1 in this significant investment has drawn criticism from U.S. lawmakers, including Democratic Senator Elizabeth Warren, who expressed concerns over potential conflicts of interest and the implications of foreign-backed funds utilizing a stablecoin associated with the sitting U.S. president. Warren highlighted the urgency for regulatory oversight, referencing pending legislation aimed at establishing a framework for stablecoins.
According to Investing.com, BitGo, the world’s largest independent qualified custodian and a leader in digital asset security, custody, and liquidity, will hold the USD1 reserves.
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The USD1 stablecoin was unveiled by WLF in March and is intended to provide a secure and stable digital currency option for institutional investors. Its adoption in the MGX-Binance deal underscores the increasing integration of cryptocurrency solutions in large-scale financial transactions and the evolving landscape of digital finance.
As of May 2025, President Trump has adopted a markedly pro-cryptocurrency stance, positioning the United States as a global leader in digital assets. His administration’s approach encompasses regulatory reforms, strategic initiatives, and personal involvement in the crypto sector.
In January, Trump signed Executive Order 14178, titled “Strengthening American Leadership in Digital Financial Technology.” This order revoked previous directives that were perceived as restrictive to digital asset innovation. It established the Presidential Working Group on Digital Asset Markets, tasked with developing a comprehensive federal regulatory framework for digital assets, including stablecoins, within 180 days.
The order also explicitly prohibited the establishment or promotion of a U.S. central bank digital currency (CBDC), signaling a preference for decentralized digital assets, according to the White House statement.
