Trump Family’s Crypto Firm Announces $2B Deal with Abu Dhabi-Backed Fund
TL/DR –
The Trump family’s cryptocurrency business, World Liberty Financial, announced a $2 billion business deal with a fund backed by Abu Dhabi, highlighting potential ethical conflicts due to the involvement of a foreign government in a private venture that could generate millions for the Trump family. The deal involves the use of a stablecoin developed by World Liberty Financial to complete the transaction between the state-backed Emirati investment firm MGX and Binance, the largest crypto exchange in the world. The deal also brings the Trump family company in business with Binance, which pleaded guilty to violating US federal money-laundering laws in 2023 and has been under US government oversight since then.
Trump Family Crypto Business Announces $2 Billion Deal with Abu Dhabi Fund
At a full-house auditorium in Dubai, Trump family’s cryptocurrency business, World Liberty Financial, declared its monumental $2 billion deal with an Abu Dhabi-backed fund, utilizing its digital coins. This transaction represents a significant foreign government contribution to President Trump’s private venture, illustrating the ethical conflicts surrounding Mr. Trump’s crypto company which has blurred business-government boundaries.
Zach Witkoff, co-founder of World Liberty Financial, disclosed the firm’s proprietary stablecoin would be used for the transaction between Emirati investment firm MGX, state-backed by UAE, and Binance, the world’s leading crypto exchange.
Controversies and Potential Conflicts
The deal connects Trump family company to a venture firm linked with a foreign government and Binance, overseen by the U.S government for violating federal money-laundering laws in 2023. The announcement also served as an advertisement to global crypto investors about potential collaborations with World Liberty, where President Trump is the chief crypto advocate.
“We thank MGX and Binance for their trust in us,” stated Mr. Witkoff, adding, “It’s only the beginning.” The duo were addressing a panel at Token2049 crypto conference in the UAE, where they shared plans for a Trump-branded hotel and tower in Dubai.
World Liberty Financial: From Skepticism to Crypto Championing
President Trump, once a crypto skeptic, embraced digital currencies during his campaign, following the industry’s massive funding into the 2024 election. World Liberty has since marketed $550 million worth of its new cryptocurrency $WLFI, and launched a stablecoin in March. However, some of these dealings present unprecedented conflicts of interest in modern U.S. history.
The Announcement’s Implications
Mr. Witkoff revealed that the stablecoin used in the MGX-Binance investment was World Liberty’s USD1. This transaction generates a substantial financial boost to World Liberty, which earns from stablecoin issues.
While the specifics of the deal remain unclear, it’s evident that World Liberty now has $2 billion in deposits to invest, potentially earning millions of dollars annually for the Trump family and World Liberty partners.
Mr. Witkoff anticipates the World Liberty stablecoin’s market cap to expand to “many billions,” and he envisions its use in the future at UAE luxury locales like the Four Seasons in Abu Dhabi, or the Trump International Hotel and Tower.
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