Trump-linked stablecoin to close Abu Dhabi investment in Binance

DUBAI - A stablecoin launched by Donald Trump's World Liberty Financial venture is being used by Abu Dhabi-backed investment firm MGX for its $2 billion investment in cryptocurrency exchange Binance, one of the project's founders said on Thursday.

The announcement was made by World Liberty Financial co-founder Zach Witkoff on Thursday at the TOKEN2049 conference in Dubai.

MGX made a $2 billion cryptocurrency investment in Binance, deepening ties between the world's largest crypto exchange and the United Arab Emirates.

Liberty Financial said in March it will launch a dollar-pegged stablecoin, USD1, adding that it will be fully backed by US Treasuries, dollars and other cash equivalents, and is designed to keep a value of $1.

Binance, founded in 2017 in China by billionaire Changpeng Zhao, grew into the world's biggest crypto exchange after tapping into soaring demand for trading bitcoin and other cryptocurrencies.

Once a crypto sceptic, the US president Donald Trump has vowed to support the industry by easing regulatory curbs and has even launched his own cryptocurrency, in a turnaround for the industry after a series of crypto company collapses in 2022.