Trump's chosen stablecoin, as revealed by Binance co-founder, slated for $2 billion investment in Abu Dhabi
Loose Cannon in Crypto: The Trump Crypto Explosion
Stepping into the digital realm, our beloved ex-president Donald Trump has left no stone unturned in his crypto-ventures, drawing both applause and criticism from all corners. Here's the lowdown on the ever-evolving Trump crypto affair.
In a jaw-dropping announcement at a recent crypto conference in Dubai, Zach Witkoff – a co-founder of Trump's World Liberty Financial – reveled that a stablecoin launched by their venture is being used for an Abu Dhabi investment firm's $2 billion investment in Binance, the world's leading crypto exchange.
Echoing similar crypto escapades spun by the Trump clan, this move is adding fuel to the fire for government ethics experts and political enemies, sounding the alarm over potential conflicts of interest.
World Liberty, whose mission is to bring financial services to the masses without intermediaries like banks, had announced earlier that it would launch USD1 – a dollar-pegged stablecoin backed by U.S. Treasuries, dollars, and other cash equivalents.
The use of USD1 in the deal puts World Liberty's foot firmly in the global crypto industry, forging ties with Binance. It's interesting to note that USD1 is issued on Binance's blockchain.
Stablecoins have become a lucrative cog in the global crypto trading wheel, with issuers raking in profits through interest earned on the Treasuries and other assets that underpin them. As of Wednesday, about $2.1 billion worth of USD1 was in circulation, making it one of the fastest-growing stablecoins, although the identity of its major holders remains a mystery.
While the transaction between Binance and MGX highlights World Liberty's growing power in the crypto world, it's also putting pressure on politicians, notably Democratic Senator Elizabeth Warren, who has sharply criticized the venture and the pending U.S. legislation on stablecoins.
Warren blasted the arrangement, stating that “a fund backed by a foreign government is making a $2 billion deal using Donald Trump's stablecoins, while the Senate is gearing up to pass the GENIUS Act – stablecoin legislation that will make it easier for the President and his family to line their own pockets. This is corruption, and no senator should support it.”
Senator Warren's admonitions raise valid concerns over conflict of interest and whether these crypto ventures are leading to a clear case of corruption. The White House and World Liberty Financial were unavailable for comment on the matter.
In the face of these developments, the spotlight remains squarely on Trump's entanglement with the crypto world. With a variety of crypto ventures in his name and with his family, the former president continues to show an undeniable interest in the burgeoning digital currency market. And as the administration continues to push for crypto deregulation, his personal ventures are only adding fuel to the cognitive dissonance.
- Donald Trump's World Liberty Financial, co-founded by Zach Witkoff, revealed recently that a stablecoin launched by them is being used for an $2 billion investment in Binance, the world's leading crypto exchange, by an Abu Dhabi investment firm.
- The stablecoin, USD1, launched by World Liberty, is a dollar-pegged stablecoin backed by U.S. Treasuries, dollars, and other cash equivalents.
- The use of USD1 in the deal with Binance marks a significant step for World Liberty, forging connections within the global crypto industry.
- Stablecoins, like USD1, have become a profitable part of the global crypto trading industry, with issuers earning profits through interest on the assets backing them.
- Democratic Senator Elizabeth Warren has criticized this arrangement, pointing out that a fund backed by a foreign government is making a $2 billion deal using Donald Trump's stablecoins, while the Senate is planning to pass the GENIUS Act, potential legislation that could benefit Trump and his family financially.
- Warren believes that this arrangement is a form of corruption, and she questions whether these crypto ventures are leading to government conflicts of interest.
- The White House and World Liberty Financial have not yet responded to Senator Warren's concerns regarding the potential conflict of interest and corruption in their crypto ventures.
