MGX, a fund backed by Abu Dhabi, will invest $2 billion in the cryptocurrency Exchange Binance Holdings Ltd using digital coins developed by Trump’s family companies.
President Donald Trump’s son Eric announced Thursday that the USD1 stubcoin developed by his family, World Liberty Financial, will become the official stubcoin in favour of MGX’s investment in two directions in crypto exchanges. The contract with foreign governments is expected to generate hundreds of millions of dollars for the Trump family.
Stablecoins are cryptocurrencies that aim to maintain one-to-one value on less volatile assets like the US dollar. Usually they do this by relying on reserves of cash and cash equivalent assets, such as US Treasury invoices and money market fund holdings.
Eric Trump made the announcement this week at Token2049, a crypto conference in the United Arab Emirates that attracted more than 10,000 digital currency enthusiasts.
MGX’s World Freedom Stabable Coin usage creates a formal link between Trump companies and Vinance. This has been under US government supervision since it admitted in 2023 that it violated the federal money laundering law. MGX is overseen by Sheikh Tanoon bin Zayed Al Nahyan, the brother of the President of the United Arab Emirates.
MGX also helped Bankroll Trump’s $100 billion venture fund the artificial intelligence infrastructure.
“I am grateful for the trust in us and thank Binance,” said Zach Witkoff, founder of World Freedom and son of Middle East Steve Witkoff’s White House envoy.
Massachusetts Sen. Elizabeth Warren has sharply criticized the latest investment.
“The suspicious fund supported by foreign governments has just announced that it will use Donald Trump’s stubcoin to make a $2 billion deal. She said the Senate is preparing to pass the “genius” law.”
Eric Trump said in December that his father “want to make America the world’s crypto capital, and he’s very clear about it.”
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