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- A $2 billion Binance deal involves USD1, a Trump-backed stablecoin, raising both financial and political controversy.
- The Trump family ties to USD 1. Donald Trump is named “Chief Crypto Advocate,” and his sons hold prominent roles.
- The deal sparks alarm over possible violations of U.S. campaign finance laws blending crypto funding with political influence.
Crypto politics and high finance: a $2 billion deal involving Binance, the world’s largest cryptocurrency exchange, has been linked with a stablecoin backed by the Trump family. The team revealed the unprecedented transaction at TOKEN2049 in Dubai. It has already ignited a storm of debate and speculation across both financial and political spheres.
The investment comes from MGX, an Abu Dhabi-based firm chaired by Sheikh Tahnoon bin Zayed Al Nahyan, who also serves as the UAE’s national security adviser. MGX is no stranger to high-stakes innovation funding. It previously collaborated with BlackRock and Microsoft on a $30 billion AI venture. This time, the firm is doubling down on crypto and doing so in a uniquely political fashion.
Instead of relying on traditional fiat transfers or established stablecoins like USDC or Tether, MGX opted to use USD1, a stablecoin launched by World Liberty Financial. What sets USD1 apart isn’t just its peg to the U.S. dollar but its highly visible ties to the Trump family. According to company materials, Donald Trump is named the “Chief Crypto Advocate,” while sons Eric and Don Jr. are dubbed “Web3 Ambassadors.” The project promotes Barron Trump as its “DeFi Visionary,” giving him the most eyebrow-raising title.
Trump-Linked Stablecoin USD1 Sparks Binance Controversy
Zach Witkoff co-founded World Liberty Financial, the issuer of USD 1. He is the son of longtime Trump associate and real estate magnate Steve Witkoff. The company markets the stablecoin as being backed by the U.S. Treasuries, aligning it with standard industry practices aimed at maintaining a 1:1 dollar peg. Yet its political branding pushes it far outside the norm for digital assets.
This marks the first high-profile crypto exchange deal executed using a politically branded stablecoin, and unsurprisingly, it’s raising a host of legal and ethical questions.
Binance’s involvement only adds fuel to the fire. The exchange is still navigating the aftermath of a 2023 guilty plea to U.S. charges of anti-money-laundering violations. With billions in fines paid and a federal monitor overseeing its operations, Binance remains under intense scrutiny. The introduction of a Trump-affiliated asset into its capital structure is poised to invite even more oversight and possibly investigation.
Critics are already questioning the optics and implications of such a transaction, particularly given Donald Trump’s ongoing presidential campaign. The potential for conflicts of interest is difficult to ignore, especially if the Trump family stands to gain financially from USD1’s rising prominence.
USD1 Stablecoin Sparks Legal, Political Alarm
Further complicating matters, there are unconfirmed reports that some USD1 holders may include foreign nationals raising flags about potential violations of U.S. campaign finance law, which prohibits foreign contributions to political candidates. If USD1 continues to blur the line between crypto funding and political influence, regulators could be forced to act.
A $2 billion investment would have been headline-worthy under any circumstances. But the use of a Trump-branded stablecoin elevates this story into uncharted territory. It signals not just a growing fusion of political identity and financial instruments but also the arrival of partisan capital in the crypto world.
As the dust settles on this deal, one thing is clear: the intersection of blockchain and geopolitics is becoming less theoretical and more consequential by the day.
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