Trump-Linked Stablecoin USD1 Powers $2B Binance Deal, Shaking Up the Crypto Landscape
Trump-backed USD1 stablecoin fuels $2B MGX-Binance deal, gaining rapid traction despite no major exchange listings.
In a landmark moment for the crypto industry, USD1—the stablecoin launched by World Liberty Financial (WLFI), a company backed by Donald Trump—has emerged as the settlement currency for a massive $2 billion investment by Abu Dhabi-based MGX into Binance. The announcement was made during the prestigious Token2049 conference in Dubai, where WLFI co-founder Zach Witkoff confirmed the news.
Despite its absence from major centralized exchanges like Binance and Coinbase, USD1 has managed to achieve a market cap of over $2.1 billion in just weeks. Witkoff framed the development as a bold endorsement of USD1’s potential: “We thank MGX and Binance for their trust in us,” he said, underscoring the stablecoin’s perceived reliability and growing influence.
Also present at the event was Eric Trump, who commented that assets like USD1 could help “disintermediate financial institutions” and reduce dependency on unreliable governments and fiat currencies. His words echoed the broader narrative of his father, Donald Trump, who has shifted from crypto skeptic to one of its most vocal proponents.
The deal itself, representing a minority stake in Binance, had been disclosed earlier in March. However, the use of USD1 for the transaction was kept confidential until now. With this, USD1 becomes the medium for the largest funding deal ever made with a crypto platform—and the biggest stablecoin-based settlement to date.
USD1’s rapid ascent has been nothing short of remarkable. It outpaced early milestones set by legacy players like Tether (USDT) and Circle’s USDC. According to data, over 2.1 billion units of the coin are already in circulation. Celebrating the milestone, BitGo—the firm providing custody and infrastructure support—described USD1’s trajectory as “the fastest rise from 0 to $1B in stablecoin history.”
Originally launched on Ethereum and Binance Smart Chain, USD1 is now expanding to the Tron network. This strategic move is backed by a $75 million investment from Tron founder Justin Sun, who joined WLFI as an investor earlier this year.
Still, USD1’s meteoric growth raises eyebrows within the crypto world, especially due to its political ties and the speed at which institutional players have embraced it. While it currently pales in comparison to USDT’s $149.3 billion market cap—which accounts for more than 61% of the stablecoin market—USD1’s momentum is undeniable.
Its absence on major exchanges may soon be addressed. Market analysts believe that listings on top platforms would significantly boost USD1’s liquidity, possibly positioning it as a serious contender in the stablecoin race and challenging the dominance of established names.
As USD1 continues to gain traction, its entry into the upper echelons of digital finance could redefine the power dynamics of the stablecoin ecosystem.
