World Liberty Financial, the Trump family’s decentralized finance project, announced that its stablecoin, USD1, was used in a US$2 billion investment in Binance Holdings Ltd by Abu Dhabi-based MGX.

The investment was made in March 2025, and the stablecoin involved had not been previously disclosed.

Zach Witkoff, co-founder of World Liberty, revealed the information during the Token2049 conference in Dubai.

Despite not being listed on centralized cryptocurrency exchanges, USD1 has an estimated market value of $US2.1 billion, according to data from CoinGecko.

🔗 Source: Bloomberg

🧠 Food for thought

1️⃣ Stablecoins evolve from volatility hedge to institutional transaction vehicle

The use of World Liberty’s USD1 stablecoin for a $2 billion investment represents a significant evolution in stablecoin utility beyond their original purpose.

Stablecoins were initially developed to mitigate the volatility of cryptocurrencies and provide a stable medium of exchange, primarily serving as trading protection for crypto investors1.

The financial scale of this transaction ($2 billion) demonstrates how stablecoins have transformed from niche trading tools to vehicles capable of facilitating major institutional transactions, reflecting their growing acceptance in mainstream finance2.

This transaction also highlights how stablecoins are reshaping the concept of money and payments systems, as noted by federal regulators, who observed that advances in technology would fundamentally change how money moves3.

USD1’s rapid accumulation of $2.1 billion in market value despite not being listed on major exchanges suggests institutional adoption is occurring before retail accessibility, which is an atypical adoption pattern compared to earlier cryptocurrencies.

2️⃣ UAE strategically positions itself as a global crypto hub through institutional investments

The MGX investment represents a deliberate strategy by the UAE to become a dominant player in the global cryptocurrency ecosystem.

The UAE has established a progressive regulatory framework for digital assets, creating an environment that has attracted major crypto businesses like Binance, which already employs approximately 1,000 people in the country2.

This $2 billion investment represents the largest institutional investment in a crypto company to date, signaling the UAE’s commitment to blockchain technology as a strategic national priority4.