Trump-backed crypto fund shakes up global markets
A $2 billion crypto investment is sending shockwaves through global finance. The fund, MGX, backed by Abu Dhabi, is investing in Binance using a Trump-family-developed stablecoin.
Eric Trump announced the partnership at Token2049, a massive crypto conference in the UAE. He confirmed that USD1, a stablecoin created by World Liberty Financial, will support MGX’s Binance stake.
The crypto world is watching closely. This move intertwines digital currency, international capital, and political legacy.
What is USD1 and why it matters in crypto finance
Stablecoins are a vital part of the crypto ecosystem. They aim to maintain parity with assets like the U.S. dollar. USD1 is no exception.
USD1 is backed by reserves such as Treasury bills and money market assets, helping it remain stable during volatile periods. Its adoption in this massive crypto deal signals growing mainstream acceptance.
World Liberty Financial, the firm behind USD1, is run by the Trump family. That adds a new political twist to crypto’s evolution.
MGX’s role in crypto and Trump’s AI vision
MGX is no ordinary fund. It operates under Sheikh Tahnoon bin Zayed Al Nahyan, brother of the UAE’s president. Its latest crypto investment connects one of the world’s most powerful sovereign networks with one of the biggest exchanges.
Beyond crypto, MGX has already pledged funds to Trump’s $100 billion artificial intelligence initiative. That project was announced one day after Trump returned to office.
This convergence of AI and crypto under a Trump-led vision is reshaping digital infrastructure globally.
Binance’s comeback with foreign crypto backing
Binance has faced U.S. scrutiny since admitting to money laundering violations in 2023. The crypto exchange has since tightened compliance and attracted new partners.
Now, MGX’s backing could restore confidence. However, using a politically-linked stablecoin raises regulatory questions.
The partnership formalizes links between Binance and the Trump family, something crypto insiders say will fuel both innovation and controversy.
Critics slam the crypto deal as political corruption
Not everyone is celebrating. Senator Elizabeth Warren labeled the crypto deal corrupt, citing concerns over foreign influence and lack of oversight.
She warned that stablecoin legislation like the “GENIUS” Act may ease the path for personal profit within the presidential circle.
“The crypto world should not become a playground for political enrichment,” she said. The legislation is still under Senate review.
Trump’s bold vision: America as a crypto hub
Eric Trump declared his father’s ambition clearly: “He wants to make America the crypto capital of the world.”
This isn’t just rhetoric. The $2 billion deal, paired with USD1’s growing presence, marks a strategic pivot. It’s about placing U.S.-branded crypto assets at the heart of global finance.
As regulatory frameworks evolve, Trump’s influence on crypto could reshape the industry for years.