World Liberty Financial, partly owned by Donald Trump's family, faces scrutiny as Eric Trump promotes its new stablecoin, USD1, during an international tour. At the Token2049 conference, the startup announced a significant partnership with MGX for a $2 billion investment into Binance, which could generate major profits for the company. As a stablecoin issuer, the firm operates on a model tying the coin's value to reserves of cash and assets, capitalizing on rising interest rates to bolster financial returns. Critics raise alarms over potential conflicts of interest due to the company's close ties to the Trump family.
As a sort-of intermediary in the deal, World Liberty Financial stands to earn tens of millions of dollars. "We thank MGX and Binance for their trust in us," Witkoff told the crowd.
USD1 is what's known in industry circles as a stablecoin, a type of crypto coin tied to a one-dollar valuation by a reserve of cash and other assets.
The profits of stablecoin issuers depend partly on the going interest rate-right now, short-term Treasuries yield a little over 4 percent -but otherwise scale in a linear fashion with supply.
Together, the pair announced that USD1, a crypto coin unveiled by World Liberty Financial in March, would be used by MGX to make a $2 billion investment in Binance.
Collection
[
|
...
]