In a notable development for the cryptocurrency industry, Abu Dhabi’s MGX investment firm has announced its decision to use USD1, a stablecoin linked to the Trump family, for a substantial $2 billion investment in Binance. The announcement was made by Eric Trump during a panel discussion at Token2049 in Dubai, underscoring the growing intersection of traditional finance and digital currencies.
A New Chapter in Crypto Investment
The use of USD1, a US dollar-pegged stablecoin launched by Trump-associated World Liberty Financial in March 2025, marks a significant milestone. It symbolizes the first institutional investment in Binance, the world’s largest cryptocurrency exchange, by MGX. The move, heralded as one of the largest funding deals in the Web3 industry, signifies a pivotal shift in the financial landscape. Eric Trump, executive vice president of the Trump Organization, emphasized this evolution by critiquing the traditional banking system’s inefficiencies. “The US is seeing that the financial world has to progress. It’s a joke. Why do banks run nine to five, Monday to Friday, with an hour and a half of lunch break? It doesn’t make sense,” he stated, highlighting the limitations of conventional finance.
The Role of Stablecoins in Transforming Finance
Eric Trump further elaborated on the cumbersome nature of traditional financial transactions, particularly those involving international transfers through the SWIFT network. He pointed out the stark contrast between SWIFT’s lengthy settlement times and the swift, efficient transactions enabled by stablecoins such as USDT or USDC on the Ethereum blockchain. While SWIFT transactions can take over a day to settle, stablecoin transactions take mere minutes, showcasing the transformative potential of digital currencies.
This strategic investment by MGX, an Abu Dhabi-based entity, into Binance not only marks its debut in the cryptocurrency arena but also reflects a broader trend of Middle Eastern investments in digital assets. The region is increasingly positioning itself as a hub for blockchain innovation, embracing the potential of cryptocurrencies to redefine financial ecosystems.
Market Implications and Future Prospects
The implications of this development are multifaceted. For Binance, securing such a significant investment underscores its status as a major player in the crypto exchange market and bolsters its expansion efforts. For the broader crypto market, it signals a growing acceptance of digital assets by institutional investors, which could pave the way for more such investments in the future.
However, this development also raises questions about the long-term sustainability and regulatory challenges that such large-scale crypto investments might encounter. While the Trump family’s foray into crypto via World Liberty Financial and now through USD1 offers a fresh perspective, it also invites scrutiny regarding the stability and transparency of such ventures.
As the world watches this unfolding narrative, one thing remains clear: the dialogue phase of the crypto revolution, as Eric Trump puts it, is well underway. The entities that recognize and adapt to this shift now, rather than in years to come, are poised to emerge as frontrunners in the next chapter of global finance. Yet, uncertainty looms—will the traditional financial systems adapt, or will they be eclipsed by this crypto-centric future? Only time will tell.
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This article is based on: Eric Trump: USD1 will be used for $2B MGX investment in Binance
Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
