A stablecoin launched by Donald Trump's World Liberty Financial (WLF) is being used

A stablecoin launched by Donald Trump's World Liberty Financial (WLF) is being used by Abu Dhabi-based investment firm MGX to facilitate

Donald Trump’s World Liberty Financial (WLF) stablecoin is being used by Abu Dhabi-based investment firm MGX to invest $2 billion in cryptocurrency exchange Binance, according to WLF co-founder Zach Witkoff via email on Thursday.

The stablecoin, named “USD1,” is pegged 1:1 to the U.S. dollar and backed by U.S. Treasuries, cash, and other equivalents to maintain a stable $1 value. This development also highlights the growing ties between Binance, the world’s largest crypto exchange, and the United Arab Emirates.

The involvement of USD1 and a U.S. president in this significant investment has drawn criticism from U.S. lawmakers. Democratic Senator Elizabeth Warren voiced her concerns over potential conflicts of interest and the implications of foreign-backed funds utilizing a stablecoin associated with the sitting U.S. president.

"We need Congress to act quickly and pass the legislation I've requested to create a regulatory framework for stablecoins," Senator Warren added.

According to Investing.com, the USD1 reserves will be held by BitGo, the world’s largest independent qualified custodian and a leader in digital asset security, custody, and liquidity.

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The USD1 stablecoin was launched by WLF in March with the aim of providing institutional investors with a secure and stable digital currency option. Its adoption in the MGX-Binance deal further highlights the increasing integration of cryptocurrency solutions in large-scale financial transactions and the evolving landscape of digital finance.

Earlier this year, President Trump adopted a markedly pro-cryptocurrency stance, positioning the United States as a global leader in digital assets. His administration's approach encompassed regulatory reforms, strategic initiatives, and personal involvement in the crypto sector.

In January, Trump signed Executive Order 14178, titled "Strengthening American Leadership in Digital Financial Technology." This order revoked previous directives that were perceived as restrictive to digital asset innovation. It established the Presidential Working Group on Digital Asset Markets, tasked with developing a comprehensive federal regulatory framework for digital assets, including stablecoins, within 180 days.

The order also explicitly prohibited the establishment or promotion of a U.S. central bank digital currency (CBDC), signaling a preference for decentralized digital assets, according to the White House statement.

News data source: kdj.com

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