Zach Witkoff, co-founder of the Trump family-led World Liberty Financial (WLF), recently announced that his new stablecoin USD1 will be used to complete MGX's strategic investment of up to $2 billion in Binance. This statement not only provides strong marketing for USD1's financing use case but also helps establish a foothold in the UAE.
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ToggleFrom the US to Dubai: USD1 Supports the $2 Billion Investment Case
Zach Witkoff revealed this information at the Token2049 conference in Dubai, which was a public discussion involving Witkoff, TRON founder Justin Sun, and Eric Trump, the eldest son of the US President:
MGX's massive investment in Binance will be settled through WLFI's newly launched stablecoin USD1.
Although it has not been confirmed whether other stablecoins will be used in this investment, USD1 has been designated as the "official stablecoin" for this investment.
It is understood that MGX's strategic investment occurred in March this year, initially only revealing that it would be settled with a stablecoin without specifying the type. As an exchange with a market share of nearly 40%, over 260 million users, and a cumulative trading volume exceeding $100 trillion, MGX's investment is undoubtedly a strong endorsement of Binance's development potential.
Eric Trump Warns: Banks Will Be Eliminated If They Don't Change
Meanwhile, Eric Trump also expressed dissatisfaction with the traditional financial system during the discussion: "Our system is broken, and modern finance is completely dysfunctional."
Banks that have previously suppressed the crypto field and political figures will regret this. I believe the crypto world will take over major banks and leave them far behind.
He further pointed out that traditional banks rely on fees to survive, while crypto technology is removing these intermediary costs: "Financial institutions will disappear like film cameras because their functions are being completely eliminated."
Eric Trump praised the UAE's open attitude towards innovative projects while also criticizing Europe's conservative stance: "The US is 1000 times stronger than Europe."
(UAE Sovereign Wealth Fund Preparing UAE Dirham Stablecoin, Revealed to Be Issued by Abu Dhabi Bank)
WLFI and USD1: The Trump Family's Crypto Empire Blueprint
WLFI is a DeFi platform co-founded by Trump and his three sons. Since launching the WLFI token in October 2024, it has attracted significant market attention. In March this year, they further partnered with custodian BitGo to launch the USD1 stablecoin, claiming it will be fully backed by US dollar cash, short-term US Treasury bonds, and other cash equivalents.
A few days ago, WLFI also signed a memorandum of cooperation with Pakistan's Crypto Currency Committee (PCC). As the government agency regulating the blockchain industry in the country, former Binance CEO CZ has also joined PCC as a strategic advisor, further strengthening WLFI's political and industrial network in the global market.
The Era of Stablecoin Wars: How Will USD1 Break Through USDT and USDC?
Currently, the stablecoin market is dominated by Tether's USDT and Circle's USDC, with a total market cap of $211 billion, occupying 91% of the market share. Ranked seventh in market cap, USD1 will face fierce competition if it wants to break through.
As a key infrastructure indispensable in DeFi, RWA, or PayFi domains, crypto KOL @yuyue_chris is optimistic about USD1's advantages in crossing multiple application layers, comparing it to Ethena Labs' USDe. He believes that if WLFI's opening price is $0.5, its fully diluted valuation (FDV) will reach $5 billion, with considerable potential.
MGX's investment not only highlights the practical application potential of stablecoins but also opens a door to institutional and mainstream markets for WLFI. As global finance increasingly relies on blockchain and digital dollar tools, whether USD1 can break through from existing stablecoin giants will be a focus of market attention.
Risk Warning
Cryptocurrency investment carries high risks, and its price may fluctuate dramatically. You may lose all of your principal. Please carefully assess the risks.
