Sitting in front of a packed auditorium in Dubai, a founder of the Trump family cryptocurrency business made a significant announcement on Thursday. A fund backed by Abu Dhabi will execute a $2 billion business deal utilizing digital coins from the Trump firm.
This transaction marks a notable contribution by a foreign government to President Trump’s private venture, expected to yield substantial profits for the Trump family. It highlights the ethical conflicts surrounding the crypto firm, which has blurred the lines between business and government interests.
Zach Witkoff, a founder of the Trump family crypto firm World Liberty Financial, stated that a stablecoin developed by the firm would facilitate the transaction between the state-backed Emirati investment firm MGX and Binance, the largest crypto exchange globally.
The details of Mr. Witkoff’s announcement carried implications of conflict of interest. MGX’s use of the World Liberty stablecoin, USD1, links a Trump family company with a venture backed by a foreign government. This deal formalizes a connection between World Liberty and Binance, a company under U.S. government oversight since admitting to violations of federal money-laundering laws in 2023.
The announcement also serves as a promotion to global crypto investors regarding the potential for partnership with a company associated with President Trump, who is identified as World Liberty’s chief crypto advocate.
“We thank MGX and Binance for their trust in us,” Mr. Witkoff stated. “It’s only the beginning.” He and Eric Trump participated in a panel at Token2049, a major crypto conference in the United Arab Emirates, attended by over 10,000 digital currency enthusiasts.
Mr. Witkoff has been on an international tour, previously visiting Pakistan to meet with government officials. Eric Trump has announced plans for a Trump-branded hotel and tower during his week in Dubai.
President Trump is scheduled to travel to Saudi Arabia, Qatar, and the U.A.E. for a state visit in two weeks.
The panel featuring Mr. Witkoff and Eric Trump was highly anticipated, with the auditorium filled to capacity with crypto investors, many standing or leaning against the walls to participate in the discussion.
Mr. Witkoff characterized the U.A.E. as "one of the most innovative, if not the most innovative, country on planet Earth today."
Representatives from Binance, MGX, and World Liberty did not respond to requests for comments.
Once skeptical of cryptocurrencies, President Trump has embraced digital currencies, with the industry contributing significant funds to his 2024 election campaign. In September, he and his sons launched World Liberty, promoting it as a new internet bank facilitating borrowing and lending through cryptocurrencies.
Since its inception, World Liberty has generated $550 million from a cryptocurrency named $WLFI, with a portion of the revenue allocated for a business entity linked to the Trump family. The company also developed a stablecoin designed to maintain a consistent value, enabling large transactions without volatility.
The firm's activities have led to unprecedented conflicts of interest in U.S. history. Some investors in $WLFI coins are foreign nationals prohibited from contributing to presidential campaigns. Moreover, several of the firm’s corporate partners have incentives to cultivate favorable relations with the federal government to expand their operations in the U.S.
The panelists in Dubai illustrated the intersection of the Trump family’s business interests with U.S. policy. Justin Sun, a prominent investor in World Liberty, was in attendance. Sun has previously faced legal challenges from the Securities and Exchange Commission regarding cryptocurrency price manipulation.
During the panel, Mr. Witkoff revealed that the stablecoin chosen for a $2 billion investment by MGX into Binance was World Liberty's USD1.
This investment provides substantial financial backing to World Liberty, with stablecoin issuers typically earning revenue by managing deposits from investors. The specifics of World Liberty’s agreement with MGX and Binance remain unclear, but the deal potentially positions World Liberty to secure significant revenue streams for the Trump family and its partners.
Mr. Witkoff projected that the World Liberty stablecoin could achieve a market cap reaching “many billions.” He added that visitors to the U.A.E. might one day transact using USD1 at the Four Seasons in Abu Dhabi, though Eric Trump corrected him, suggesting the coin would instead be used at the Trump International Hotel and Tower.