A recent Bloomberg report uncovers the connection between cryptocurrency exchange Binance and the stablecoin issued by World Liberty Financial, backed by Donald Trump.
Creation of USD1 Stablecoin
According to Bloomberg, Binance played a crucial role in the creation and promotion of the USD1 stablecoin launched by World Liberty Financial (WLF) on March 4. WLF is backed by Trump and his three sons.
Investments and Financial Matters
An Abu Dhabi-based investment firm, MGX, announced a $2 billion investment in Binance on March 12 using an unnamed stablecoin at the time. Eric Trump, one of WLF’s co-founders, stated that the company would use USD1 to settle investments. As of Friday, 90% of all USD1 coins used in the transaction remained in Binance's wallets, potentially generating tens of millions of dollars in interest for Trump and his family.
Legislative Initiatives and Ties to Trump
The relationship between Binance and a business closely tied to the U.S. President raises questions about potential conflicts of interest. Meanwhile, Republican leaders in the House are expected to consider three crypto bills, including one pertaining to the regulation of payment stablecoins in the U.S.
The connection between Binance and WLF raises significant questions regarding political influence and potential conflicts of interest, especially in light of upcoming voting on bills in the House.
