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Dubai: Stablecoin USD1 selected for $2 billion MGX investment
This was announced in Dubai by Zach Witkoff, co-founder of World Liberty Financial (WLF) — a decentralised finance protocol, owned by the Trump family
- PUBLISHED: Thu 1 May 2025, 2:55 PM
The stablecoin USD1 was selected for Abu Dhabi-based AI and advanced technology investor MGX’s investment in the crypto exchange Binance. Last month, it was announced that MGX would invest $2 billion in Binance, making it the single largest investment into a crypto company.
This was announced in Dubai by Zach Witkoff, co-founder of World Liberty Financial (WLF) — a decentralised finance protocol, owned by the Trump family. He was joined by Eric Trump and Justin Sun, a Chinese-born crypto billionaire who founded the cryptocurrency TRON on stage at the Token2049 Dubai.
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“We thank MGX and Binance for their trust in us and I think it's only the beginning,” he said, addressing a room packed with people. The event which took place at Madinat Jumeirah on April 30 and May 1 brought together over 15,000 people in the crypto industry to exchange ideas and network and had over 500 side sessions.
It is part of a global conference series that will take place at different locations around the world. Last month, it was announced that MGX would invest $2 billion in Binance — making it the single largest investment into a crypto company.
Rise in popularity of stablecoins
Stablecoins — which are a type of cryptocurrency whose value is pegged to another asset, like a fiat currency or gold — have been increasing in popularity in the last couple of years. USD1 was launched by WLF in March this year and has been pegged to the US dollars.
Earlier this week, three UAE companies announced the launch of a stablecoin, backed by the dirham.
Backed by IHC, ADQ and First Abu Dhabi Bank, the stablecoin will be regulated by the Central Bank of the United Arab Emirates (CBUAE). FAB – the largest bank in the country – will issue the stablecoin following the regulatory approvals and will be used as a reliable digital currency across a wide range of everyday scenarios — by citizens and consumers, businesses and institutions.
According to Dan Morehead, Founder of Pantera Capital, the popularity of stablecoins is because of a number of reasons. “Stablecoins have all the beauty of bitcoin and other cryptocurrency and removes the volatility,” he said. “It is allowing five billion people on earth to access the financial system. There is a $250 billion of demand for stablecoins.”
He added that with the threat of tariffs looming over the world, stablecoins will have an even bigger role to play in the financial system.
Changing the financial system
One of the overarching themes of the conference was how cryptocurrency was the future of the world. Eric Trump said that the modern financial system “is absolutely broken” and it needs to change.
“Every single week I'm chasing a wire transfer,” he said. “Why is it that on a Friday afternoon at 4 in the US, I'm waiting for a SWIFT wire transfer to come in when right now anybody could move Bitcoin or USD1 or any other kind of form of currency across the world in a matter of seconds? The SWIFT system is broken and is going to be replaced by cryptocurrency.”
Zach added that WLF was established when the team “started to look at the gaps” that existed in the traditional financial system which left 1.4 billion people “without access to financial tools”.
