Abu Dhabi investment firm MGX will use USD1, a stablecoin launched by Donald Trump’s World Liberty Financial, for its $2 billion investment in cryptocurrency exchange Binance. The announcement was made by Zach Witkoff, co-founder of World Liberty Financial, on Thursday during his participation at the TOKEN2049 conference in Dubai.
Earlier this year, Binance and MGX announced the landmark $2 billion investment. This transaction, the first institutional investment in Binance to date, marked a significant step in advancing digital asset adoption and reinforcing blockchain’s role in global finance.
Single largest investment in a crypto company
This investment marked MGX’s first entry into the cryptocurrency and blockchain sectors, securing a minority stake in Binance as part of a broader strategy to support blockchain’s transformative impact on society. It is the single largest investment in a crypto company and the largest investment ever paid in stablecoin.
By partnering with Binance, MGX aims to enable innovation at the intersection of AI, blockchain technology and finance.
Notably, Binance has a substantial footprint in the UAE. Today, Binance employs approximately 1,000 of its 5,000 global workforce in the UAE. The company is also larger than the next several cryptocurrency exchanges combined by trading volume, boasting over 260 million registered users and surpassing $100 trillion in cumulative trading volume.
Dollar-pegged stablecoin targets sovereign investors
In March, Liberty Financial said it will launch a dollar-pegged stablecoin, USD1. The stablecoin will be fully backed by U.S. Treasuries, dollars and other cash equivalents and is designed to keep a value of $1, World Liberty said in the statement.
Witkoff said “sovereign investors and major institutions” would be able to integrate USD1 “into their strategies for seamless, secure cross-border transactions.”
USD1 will be “fully backed by a reserve portfolio audited regularly by a third-party accounting firm,” World Liberty added.
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Bitcoin could hit $1 million by 2028
Day 1 of TOKEN2049 saw a significant appearance by Changpeng Zhao (CZ), who shared insights on artificial intelligence, Bitcoin mining in Bhutan, and regulatory changes in China and Hong Kong. He noted, “Regulators want to regulate locally,” highlighting the evolving landscape of cryptocurrency regulation.
Arthur Hayes predicted Bitcoin could hit $1 million by 2028, while VanEck’s CEO warned, “Don’t buy Ethereum ETFs just for hype.” Eric Balchunas even joked, “Trump, Melania ETFs… Who’ll buy that?” With Day 2 loaded with even more heavyweight speakers, expect the conversations to push boundaries — and possibly, markets.
