A firm linked to the ruling family of the United Arab Emirates has selected USD1, the stablecoin launched by President Donald Trump’s sons, to complete a $2 billion deal with the crypto exchange Binance. This decision has sparked criticism, with detractors arguing it may create a conflict of interest.
Since taking office again, President Trump has witnessed the rapid expansion of his family’s business ties with the UAE, characterized by a series of real estate and investment deals that highlight the region’s growing significance in U.S. economic policy. The UAE has not only been a key ally in diplomatic initiatives but also a burgeoning market for the Trump family’s business ventures.
Newsweek has sought comments from the White House, the State Department, and the foreign ministry of the UAE to address these emerging concerns. Meanwhile, the White House has maintained that Trump’s businesses are managed by his children, asserting that there are no conflicts of interest.
Why It Matters
The announcement regarding the use of USD1 has ignited fervent criticism due to the Trump family’s involvement in a business initiative that intersects with foreign governmental interests. This deal, backed by UAE’s MGX and led by its National Security Adviser, Sheikh Tahnoon bin Zayed Al Nahyan, illustrates the increasing financial entanglements between the Trump businesses and the Gulf monarchy.
Evelyn Hockstein/AP Photo
What to Know
MGX, a technology investment firm backed by the UAE’s Mubadala Investment and AI company G42, has announced that it will use USD1—a stablecoin launched by the Trump family—for a significant $2 billion investment in Binance. This monumental deal was disclosed during the Token2049 crypto conference in Dubai, presented by Zach Witkoff, co-founder of World Liberty Financial, and son of Trump’s Middle East envoy, Steve Witkoff. The growing involvement of the Trump family in the digital currency sector and Gulf business circles is underscored by their prominent roles in this high-stakes investment.
Trump Tower Dubai and Other Ventures
This crypto transaction is merely the latest in a sequence of ventures that connect the Trump Organization with the UAE. Most notably, the Trump Organization recently announced the development of Trump Tower Dubai, set to be an 80-story luxury edifice in collaboration with Dar Global. With a completion target set for 2031, the tower will encompass a hotel, residences, and high-end amenities including an outdoor swimming pool at its pinnacle.
In a significant commitment, the UAE has vowed to inject $1.4 trillion into U.S. sectors over the next decade, particularly emphasizing artificial intelligence, energy, and semiconductors. This agreement, cemented during discussions between President Trump and UAE officials, solidifies the economic linkages between the two nations.
Timing Raises Red Flags
The UAE’s substantial investments in American sectors, such as AI and energy, have fostered increased economic bonds but have also raised eyebrows concerning possible foreign influence over U.S. business and political landscapes. These intertwining financial relationships develop in the lead-up to Trump’s upcoming visit to the Gulf from May 13 to May 16, which is expected to showcase and solidify burgeoning business collaborations.
Critics, including Senator Chris Murphy, have labeled this venture as “corrupt” and “likely illegal,” especially in light of ongoing discussions within Congress regarding stablecoin legislation. Senator Elizabeth Warren amplified these concerns on social media: “A shady fund, backed by a foreign government, just announced a $2bn deal using Trump stablecoins.”
Donald Trump’s latest corruption?
A $2 BILLION stablecoin deal with a foreign crypto company that will benefit the Trump family business.
And it gets worse — the Senate is getting ready to bless this kind of grift.
But it’s not too late to make changes.
Here’s the latest: pic.twitter.com/3IaQOCZTfL
— Elizabeth Warren (@SenWarren) May 1, 2025
What People Are Saying
Zach Witkoff, co-founder of World Liberty, remarked: “We are excited to announce today that USD1 has been selected as the official stablecoin to close MGX’s $2bn investment in Binance.”
A White House spokesman asserted on April 8: “President Trump’s assets are held in a trust managed by his children. There are no conflicts of interest.”
Senator Elizabeth Warren expressed on social media: “Donald Trump’s latest corruption? A $2 BILLION stablecoin with a foreign crypto company that will benefit the Trump family business.”
What Happens Next
President Trump’s impending visit to the Gulf is anticipated to further entrench U.S.-UAE business partnerships, intertwining political authority with strategic Middle Eastern economic interests. As these developments unfold, opposition to the Trump family’s international business involvements is likely to intensify.
Susan Walsh/AP Photo
