Sitting in front of a packed auditorium in Dubai, the founder of the Trump family's cryptocurrency business made a short but monumental announcement on Thursday. The Abu Dhabi-backed fund said it would use Trump company's digital coins to conduct $2 billion in business transactions.
The deal will be a major contribution from foreign governments to President Trump's private venture. It aims to generate hundreds of millions of dollars for the Trump family. And it's a public, crisp illustration of the ethical conflict swirling around Trump's crypto company, which blurs the boundaries between business and government.
Zach Witkoff, founder of World Liberty Financial, a Trump family's crypto company, has revealed that the so-called Stablecoin developed by the company will be used to close a transaction between state-backed Emirati investment companies MGX and Binance, the world's largest crypto exchange.
Nearly every detail of Witkov's announcement made on a conference committee with Trump's second son, Erdest, contained a conflict of interest.
As MGX uses USD1, the Stablecoin of World Freedom, Trump's family companies are leading them to business with foreign government-backed venture companies. This contract creates a formal link between world freedom and Binance. This is a company that has been under US government supervision since 2023, when it granted it a violation of the federal government's money laundering laws.
And the flashy announcement served as an advertisement for crypto investors around the world about the possibility of forming a partnership with a company tied to President Trump, listed as the leading crypto advocate for the world's Liberty.
“We thank MGX and Binance for their trust in us,” said Witkoff, son of Steve Witkoff, the son of Middle Eastern White House envoy. “That's just the beginning.”
Witkov and Eric Trump were speaking at a panel at Token2049, the leading crypto conference held in the United Arab Emirates. It was the latest stop on an international tour by Witkov, who visited Pakistan with his business partners last month to meet the Prime Minister and other government officials. Family-owned business Eric Trump has spent a week in Dubai where he announced plans to support Trump-branded hotels and towers.
The president himself will travel to Saudi Arabia, Qatar and the United Arab Emirates on a state visit in two weeks.
His son's panel with Witkov was the most anticipated event at the Dubai conference. The auditorium in a luxury resort on the coast of the Persian Gulf was packed with crypto investors from all over the world.
“This is just an incredible country,” Witkov said from the stage. “Today, it is one of the most innovative, if not the most innovative countries on the planet.”
Representatives from Binance, MGX and World Liberty did not respond to requests for comment.
President Trump, a former crypto skeptic, embraced digital currency on the campaign trail last year as the industry was pouring tens of millions of dollars into the 2024 election. In September, he and his sons announced the freedom of the world. They pitched it as a new kind of internet bank that allows people to borrow and lend money using cryptocurrency.
Since then, World Liberty has sold $550 million worth of new cryptocurrency, known as $WLFI, and has sold a massive cut in revenue allocated to business entities tied to the Trump family. In March, the company also created Stablecoin. This is a kind of digital currency designed to maintain a dollar price, and is convenient to use for large transactions as its value does not shake like inventory.
The company's transactions have created a conflict of interest that is unprecedented in modern American history. Some investors who purchased $WLFI coins are foreigners who are forbidden from supporting the president via campaign contributions or donations to the initial fund. And many of its corporate partners have a clear incentive to curry favors with the federal government as they are about to expand in the US market.
Even the panelist roster on the Dubai scene highlights how vague the Trump family's business interests are now in US policy and regulations.
Sitting alongside Witkoff and Eric Trump is Justin Sun, one of the world's top Liberty investors, and a Chinese-born billionaire who runs the crypto platform Tron. Sun purchased $75 million in $WLFI coins after the election.
About a year ago, the Securities and Exchange Commission sued Sun, accusing him of manipulating the prices of Tron cryptocurrency. When Trump took office, the SEC asked federal judges to suspend the lawsuit while the agency negotiated a settlement.
“I've come to appreciate your support,” Justin said. “Tron is incredible technology and we are lucky to be partnering with you.”
Soon Witkov delivered a big reveal of the panel.
In March, Binance announced that MGX, an Abu Dhabi government-backed investment fund, would use Stablecoins to invest $2 billion in exchange. However, it was not disclosed which particular Stablecoin to use.
The coin selected for the transaction was World Liberty USD1, Witkoff said.
“Wow,” replied San.
The leaders of MGX and Binance have a high stake in with US officials.
MGX is led by Emirati Royal Family Sheikh Tanoon bin Zayed Al Nahyan, who serves as national security adviser. In March, Sheikh Tanoon visited the United States for a meeting with President Trump and some of his Cabinet members and advisors.
In 2023, Binance pleaded guilty to accusations that violated US money laundering laws and allowed criminals to trade on the platform. As part of a settlement with the Department of Justice and other federal agencies, the company was placed under the Department of Treasury supervision to ensure it complies with the law.
Over the past few months, Binance founder Changpeng Zhao pleaded guilty to money laundering violations and has been seeking pardon from the Trump administration after spending four months in federal prison.
The role of USD1 in Binance's deal with MGX provides great financial support to the freedom of the world.
Stablecoin issuers like World Liberty earn money by accepting deposits from investors, providing Stablecoins in return, and investing those deposits to generate the yields the issuer holds.
The exact details of the world freedom arrangement between MGX and Binance are unknown. However, one transaction appears to have World Liberty currently having $2 billion in deposits. These funds alone can generate tens of millions of dollars in annual income for the Trump family and their World Liberty partners.
Ultimately, Witkov said he expects the world's Liberty Stubline to grow even greater from the Dubai stage, reaching “billions of market capitalization.”
One day, he continues, and visitors to the United Arab Emirates may use USD1 coins to pay in Abu Dhabi's Four Season.
At that time, Eric Trump broke into the fix.
“I'm not going to step into the Four Seasons using USD1,” he said. “You're going to walk to the Trump International Hotel and the Tower.”
