Trump's chosen stablecoin to receive $2 billion funding from Abu Dhabi, as per Binance co-founder's statement.
Trump's World Liberty Crypto Venture Makes a Splash
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Well, buckle up, folks! It looks like Donald Trump'scrypto empire is expanding once more. World Liberty Financial, a venture by the ex-president, has just partnered with an Abu Dhabi investment firm, MGX, in a $2 billion crypto exchange investment that's causing a stir.
One of World Liberty's co-founders Zach Witkoff spilled the beans during a crypto conference in Dubai. He announced that the US-dollar-pegged stablecoin USD1, backed by U.S. Treasuries, dollars, and other cash equivalents, will be the mode of payment for this mega deal.
Witkoff also highlighted that USD1 will be integrated into the Tron blockchain, a move that promises to boost the global crypto industry further. Tron is a blockchain platform backed by Justin Sun, the investor putting $75 million in World Liberty's kitty.
The deal has predictably drawn criticism from political foes and ethics experts, some of whom take issue with potential conflicts of interest. Take, for instance, Sen. Elizabeth Warren, a member of the U.S. Senate Banking Committee, who accused the Senate of passing the "GENIUS" Act, claiming it would make it easier for Trump and his family to profit.
Binance founder Changpeng Zhao, a major shareholder of Binance, has also been in the news recently, having met Witkoff and two other World Liberty co-founders in Abu Dhabi.
Now, here's where things get a little tricky. The White House and World Liberty Financial haven't responded to requests for comment. The value of USD1 in circulation reached about $2.1 billion on Wednesday, but the identity of its major holders remains unclear, causing a bit of a stomachache for regulatory authorities.
As for transparency, Zach Witkoff and Eric Trump have stated that USD1 prioritizes "consumer safety" through compliance with regulatory standards. They also claim that the stablecoin is backed by short-term U.S. Treasuries and cash equivalents.
One thing's for sure, though. The Trump-affiliated stablecoin's expansion into the global cryptocurrency landscape is raising some eyebrows—and not just because it's a Trump family venture. The political implications are significant, especially given the potential for foreign entities to leverage investments in influencing U.S. crypto policy.
- The $2 billion crypto exchange investment by World Liberty Financial, led by Donald Trump, was launched with an Abu Dhabi investment firm MGX.
- The new stablecoin, USD1, backed by US Treasuries, dollars, and other cash equivalents, will be the mode of payment for World Liberty Financial's exchange.
- The integration of USD1 into the Tron blockchain, facilitated by an investment from Justin Sun, promises to bolster the global crypto industry.
- Criticism of the partnership between World Liberty Financial and MGX has come from political foes and ethics experts, including Sen. Elizabeth Warren, who accused the Senate of passing the "GENIUS" Act for potential conflicts of interest.
- Binance founder Changpeng Zhao, a major shareholder of Binance, recently met Zach Witkoff and two other World Liberty co-founders in Abu Dhabi.
- The value of USD1 in circulation hit approximately $2.1 billion on Wednesday; however, the identity of its major holders remains undisclosed, creating concerns for regulatory authorities.
- World Liberty Financial and the White House have not responded to requests for comment regarding the stability, compliance, and transparency of USD1.
