Trump-Linked Stablecoin Boosts Binance Chain With $2B Investment
By: Isha Das
In a significant development within the cryptocurrency space, Abu Dhabi's MGX investment firm, led by Eric Trump, is channeling a substantial $2 billion into Binance through the Trump-affiliated USD1 stablecoin. This move marks one of the largest funding initiatives in the Web3 realm, positioning both MGX and Binance in the spotlight. The World Liberty Financial USD (USD1) stablecoin, which debuted in March 2025, is pegged to the US dollar and backed by U.S. Treasury bills and BitGo's custodianship. This initiative, announced during the Token 2049 event in Dubai, underscores the growing influence of stablecoins in major financial transactions.
The introduction of USD1 has not only catalyzed a notable supply increase on Binance's BNB Chain but also shifted the competitive landscape of layer-1 blockchains. According to data from DefiLlama, the BNB Chain's stablecoin market capitalization surged by 30% last week, pushing its value to $9.26 billion. This puts Binance in closer competition with Solana, which currently boasts a stablecoin market share of 5%, while BNB Chain now controls 3.8% of the market.
Despite its rapid rise, USD1 is subject to scrutiny due to its political affiliations with former U.S. President Donald Trump. As a politically branded stablecoin, it introduces unique regulatory and reputational challenges distinct from other stablecoins like USDT and USDC. Nonetheless, Eric Trump's announcement that USD1 will settle MGX's investment in Binance is viewed as a strategic move towards a transparent and regulated digital dollar, with potential impacts on institutional accessibility and mainstream adoption.
Looking forward, the success of USD1 on the BNB Chain could herald a new era for competitively-placed stablecoins, altering liquidity flows and shifting developer priorities across decentralized finance platforms. However, the sustainability of USD1’s trajectory will hinge on its ability to deepen liquidity, achieve wider exchange listings, and maintain rigorous audit transparency to reassure potential stakeholders.
