MGX Invests $2 Billion in Binance Using USD1 Stablecoin

MGX, an Abu Dhabi-based tech investment firm, has completed a $2 billion investment in Binance, the global cryptocurrency exchange. This significant investment was executed entirely using USD1, a dollar-backed stablecoin developed by World Liberty Financial. The deal was announced during the TOKEN2049 conference in Dubai, marking the largest institutional investment to date that has been funded solely through stablecoins.

Eric Trump, son of the former US President Donald Trump, revealed additional details about USD1 during the conference. He announced that USD1 will integrate with the Tron blockchain, which is backed by crypto mogul Justin Sun. This integration is part of USD1's expansion strategy, aiming to increase its presence in the global crypto sector, including Pakistan.

USD1 was launched earlier this year by World Liberty Financial, a fintech company in which the Trump family holds a 60% ownership stake. The stablecoin is designed in partnership with custody provider BitGo and is fully backed by short-term US Treasuries and cash equivalents. This backing ensures a level of transparency and consumer protection that is not always associated with other stablecoins.

The investment by MGX into Binance represents a significant milestone for the global exchange. It is the first institutional deal of its kind for Binance and signals a potential shift in how private capital and crypto-native platforms may cooperate in a regulatory-conscious environment. MGX's investment secures the firm a minority stake in Binance, aligning with its long-term vision of integrating artificial intelligence, decentralized finance (DeFi), and blockchain into mainstream capital markets.

MGX views Binance as a foundational pillar in the global crypto infrastructure, particularly in the MENA region. Binance's significant presence in the UAE, with over 1,000 staff members, 20% of its global workforce, underscores the Emirate’s growing role as a hub for regulated digital finance.

World Liberty Financial is also rapidly expanding its geopolitical influence. The company has signed a letter of intent with the Pakistan Crypto Council, aiming to drive blockchain and stablecoin adoption in the region. Executives from World Liberty Financial met with high-ranking Pakistani officials, including Prime Minister Shehbaz Sharif and Army Chief General Asim Munir, in Islamabad to discuss this initiative.