USD1, Binance Exchange and Its Connection with Trump: Stablecoin Causes Much Controversy

World Liberty Financial, a company linked to Trump, has launched USD1, a stablecoin built by Binance and used to facilitate a $2 billion investment in MGX, raising global scrutiny over transparency and influence. USD1, Binance Exchange and Its Link with Trump In a year filled with legal battles and changes in the institutional landscape of cryptocurrency, a new chapter is unfolding—the chapter linking the world's largest exchange, a financial joint venture backed by Trump, and a $2 billion transaction from the Gulf. Stablecoin with Political Origins At the beginning of 2025, a newly established financial company entered the cryptocurrency field: World Liberty Financial, reportedly founded by members of the Trump family. Initially, there were only a few vague press releases about building a "free market digital financial system." That changed in March, when the company announced the launch of USD1, a stablecoin pegged to the US dollar designed for large-scale organizational payment purposes. While the launch of stablecoins is quite common nowadays, this coin quickly attracted attention - not because of its nature but because of the person who built it. Binance Builds Infrastructure According to investigations by newspapers such as The Daily Beast and CoinDesk, Binance —still the largest cryptocurrency exchange in the world— has written smart contract code supporting USD1. This is not a superficial collaboration; it is a deep technical involvement. Binance also promotes USD1 through its channels, and blockchain data shows that over 90% of USD1 tokens are currently held in wallets linked to Binance. In fact, Binance is both the main issuer and the primary ecosystem for the use of this stablecoin. Agreement to Resolve 2 Billion USD The relationship between Binance and World Liberty became clearer in May 2025 when Eric Trump publicly confirmed that 1 USD would be used to pay for a 2 billion USD investment from Abu Dhabi's MGX fund into Binance. Although there is little information about the internal structure of MGX, it is regarded by many as a government-backed investment fund, closely linked to the interests of the Gulf region. The timing of this deal is very significant - Binance has recently undergone a major regulatory overhaul, including a $4.3 billion agreement with the U.S. authorities and the transfer of leadership from Changpeng Zhao to Richard Teng. The fact that such a large investment was made using a newly launched stablecoin raises serious questions - not only about the legality of the currency but also about the broader implications for market governance. Who Controls USD1 Stablecoins are often trusted due to transparency, audited reserves, and clear regulations. However, USD1 remains quite ambiguous. The origins of this currency have not been widely disclosed, and the concentration of tokens within a single ecosystem undermines the idea of decentralized use. The more concerning issue is the link between the two main parties involved: Binance, a company under tight global scrutiny, and the Trump family, with its long-standing political connections and influence. Critics have raised the possibility that USD1 could be more than just a financial tool—it may also be a strategic asset for those looking to shape the digital financial infrastructure with minimal oversight. Response of Regulatory Agencies and the Industry Considering the relevant entities, it is no surprise that USD1 is facing opposition. U.S. regulators may raise concerns about conflicts of interest, especially if the Trump family's political connections overlap with digital asset activities. For Binance, this participation further adds to the list of questions about transparency and accountability. After years of operating with limited regulatory cooperation, this exchange is trying to pivot toward regulatory compliance—but such partnerships complicate that narrative. In the cryptocurrency industry, opinions are quite divided. Some people view USD1 as a prime example of efficient capital liquidity outside of the traditional banking system. Others are concerned that this currency could become a loophole for financial activities beyond control with limited checks and balances. Why Is This Case Important? Stablecoins are the backbone of the cryptocurrency economy - a key factor for liquidity, trading, and DeFi activities. But they also require trust. When reserve data is unclear, there is a high level of centralized usage, and the involvement of politicians, questions will quickly arise. USD1 is not just a new token but also a signal that the next phase of stablecoin development may be defined less by technical innovation and more by political capital and organizational influence. At a time when regulatory authorities are tightening control over cryptocurrencies worldwide, a stablecoin like USD1, developed by Binance and linked to a prominent political family in the United States, risks becoming a target of attention. Looking Ahead Will USD1 break out of the Binance ecosystem or fade away under pressure? Only time will tell. But it has exposed a complex network of influence - where cryptocurrency, politics, and national capital intersect. This case could soon become a precedent: not only regarding the launch and use of stablecoins but also in how the legal framework will handle currencies tied to both geopolitical and financial centers.