Trump-linked World Liberty Financial's stablecoin USD1 to close Binance's record $2 billion investment from MGX
Quick Take
- World Liberty Financial co-founder Zach Witkoff said USD1 will be “the official” stablecoin to close the deal at a conference in Dubai.
- Though MGX’s $2 billion investment into Binance on March 12 mentioned it would be closed using stablecoins, initial company statements did not mention which ones, The Block reported at the time.
The Abu Dhabi investment firm MGX will use World Liberty Financial's recently announced stablecoin USD1 to close its landmark $2 billion deal with the crypto exchange Binance.
At the Token2049 conference in Dubai, WLFI co-founder Zach Witkoff said USD1 will be "the official" stablecoin to close the deal. It remains unclear if other stablecoins will be used.
While MGX's $2 billion investment into Binance on March 12 mentioned it would be closed using stablecoins, initial company statements did not mention which ones, The Block reported at the time. The deal not only marked MGX's first investment in a cryptocurrency firm but also included MGX taking a minority stake in Binance.
Binance is one of the world's largest cryptocurrency exchanges by spot volume, drawing in $483 billion (37.7%) of April's total spot market volume of $1.28 trillion.
World Liberty Financial is a decentralized finance (DeFi) project that lists U.S. President Donald J. Trump and three of his sons as team members. The announcement was made during a fireside chat with Witkoff, Tron Founder Justin Sun, and Eric Trump, President Trump's son.
"I believe the crypto world is going to take over the big banks," the younger Trump said during the fireside chat. "I think it’s going to leave them in the dust."
The project launched its WLFI token in October 2024 and unveiled its roadmap for USD1 in March 2025. The stablecoin is expected to be fully backed by U.S. dollar deposits, short-term U.S. Treasurys, and other cash equivalents, according to The Block. World Liberty Financial has also mulled airdropping USD1 to WLFI token holders, though no firm plans have been announced.
The announcement that USD1 will be used to close Binance's MGX investment comes after World Liberty Financial stated that it signed a memorandum of understanding (MOU) with the Pakistan Crypto Council (PCC) on April 28. The PCC is a governmental agency overseeing the blockchain industry growth in the nation. Earlier in the month, former Binance CEO Changpeng 'CZ' Zhao joined the PCC as a strategic advisor, The Block previously reported.
USD1 will face steep competition from market leaders Tether (USDT) and Circle (USDC), which together account for nearly $211 billion — or 91% — of the total $231 billion stablecoin market.
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