Trump's stablecoin being used for $2 billion Abu Dhabi investment in Binance, co-founder says

A stablecoin launched by Donald Trump's World Liberty Financial crypto venture is being used by an Abu Dhabi investment firm for its $2 billion investment in crypto exchange Binance, one of World Liberty's co-founders said on Thursday.

World Liberty, which aims to allow people to access financial services without intermediaries like banks, said in March it would launch USD1, a dollar-pegged stablecoin backed by U.S. Treasuries, dollars and other cash equivalents.

World Liberty co-founder Zach Witkoff told a crypto conference in Dubai that USD1 would be used to close the $2 billion investment by Abu Dhabi-based MGX into Binance, the world's biggest crypto exchange.

"We are excited to announce today that USD1 has been selected as the official stablecoin to close MGX's $2 billion investment in Binance," said Witkoff, one of the sons of Trump's envoy Steve Witkoff.

The news of USD1's use in the deal highlights World Liberty's growing clout in the global crypto industry, and its ties to Binance. USD1 is issued on Binance's blockchain.

Stablecoins are an increasingly lucrative cog in global crypto trading. Their issuers typically profit from them by earning interest from the Treasuries and other assets that underpin them.

The value of USD1 in circulation reached about $2.1 billion on Wednesday, according to CoinMarketCap data, making it one of the fastest-growing stablecoins. The identity of its major holders, however, has remained unclear.

An anonymous cryptocurrency wallet that holds $2 billion worth of USD1 received the funds between April 16 and 29, according to data from crypto research firm Arkham. Reuters could not ascertain the owner of this wallet.

Separately, Witkoff announced that USD1 would be integrated on to Tron, the blockchain of Hong Kong-based crypto entrepreneur Justin Sun.

Sun is the biggest known investor in World Liberty and an advisor to the venture, according to his social media posts, having poured at least $75 million into the project.

Sun moderated the panel on which Witkoff spoke on Thursday, with Trump's son, Eric Trump, also onstage.

U.S. President Donald Trump, who campaigned on promises to be a "crypto president," has pledged to overhaul U.S. rules on crypto.

His crypto business interests, which include World Liberty and a 'meme coin' launched in January, have drawn criticism from government ethics experts and political opponents over potential conflicts of interest.

Trump handed over management of his assets to his children before returning to the White House and he will have no role in day-to-day decision making, his company has said.