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MGX Invests $2 Billion in Binance Using Trump-Linked Stablecoin

Coin WorldThursday, May 1, 2025 6:08 am ET

1min read

MGX, an investment firm based in Abu Dhabi, has revealed plans to utilize a stablecoin linked to the Trump family for a significant investment in Binance, the world's largest cryptocurrency exchange. The stablecoin in question, the world liberty financial USD (USD1), is pegged to the US dollar and was launched by the Trump-associated World Liberty Financial (WLFI) crypto platform in March 2025.

Eric Trump, the son of the US President and the executive vice president of the Trump Organization, announced during a panel discussion at Token 2049 Dubai that mgx will employ the USD1 stablecoin for its $2 billion investment into Binance. This investment marks MGX's inaugural foray into the cryptocurrency sector and is notable as the first institutional investment in Binance, potentially making it the largest funding deal in the entire Web3 industry.

MGX's announcement of the $2 billion stablecoin investment into Binance was made on March 12. However, Binance declined to disclose which stablecoin was used in the transaction when approached for comment. This investment signifies a strategic move by MGX to enter the rapidly evolving cryptocurrency market, leveraging the stability and credibility associated with the Trump-linked stablecoin.

The use of the USD1 stablecoin for such a substantial investment underscores the growing acceptance and integration of stablecoins in high-value financial transactions. Stablecoins, which are designed to maintain a stable value relative to a reference asset, offer a reliable medium of exchange and store of value in the volatile cryptocurrency market.

Eric Trump's announcement at Token 2049 Dubai highlights the increasing involvement of prominent political figures and their families in the cryptocurrency industry. The Trump family's association with the World Liberty Financial platform and the USD1 stablecoin adds a layer of political and financial influence to the cryptocurrency space, potentially attracting more institutional investors and enhancing the legitimacy of digital assets.

MGX's decision to invest $2 billion in Binance using the USD1 stablecoin is a significant development in the cryptocurrency industry. It demonstrates the potential for stablecoins to facilitate large-scale investments and transactions, providing a stable and secure alternative to traditional fiat currencies. This move could pave the way for more institutional investments in the cryptocurrency market, further driving its growth and adoption.

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