A Middle Eastern Company Is Committing a $2 Billion Cryptocurrency Investment Through Trump's Ventures
In a series of significant developments, the United Arab Emirates (UAE) has emerged as a key player in the global cryptocurrency scene, with several high-profile transactions involving prominent figures and companies.
One of the most notable investments was announced at Token2049, a cryptocurrency conference in the UAE. The Trump family's cryptocurrency venture, World Liberty Financial, revealed a transaction worth $2 billion. MGX, an investment firm owned by the government of Abu Dhabi, is the party making this investment.
MGX, chaired by Sheikh Tahnoon bin Zayed Al Nahyan, the brother of UAE President Mohamed bin Zayed Al Nahyan, will be using World Liberty Financial's recently launched stablecoin, USD1, for the transaction.
Justin Sun, the founder of crypto platform TRON, is another key player in this deal. Sun bought $75 million worth of World Liberty Financial's cryptocurrency token after the 2024 presidential election. Zach Witkoff, co-founder of World Liberty Financial, made the announcement alongside Eric Trump and Donald Trump, Jr.
Eric Trump is involved through a personal cryptocurrency company with an unspecified stake in Binance, stemming from MGX's $2 billion investment. However, the exact timeframe for this transaction is not detailed in the available information.
The investment of $2 billion will be made in Binance, the world's largest cryptocurrency exchange by trading volume. This transaction involves a state-owned investment fund and a private cryptocurrency exchange, marking a significant step in the growing relationship between governments and the cryptocurrency industry.
President Trump is also set to visit the UAE region in the coming weeks, and reports suggest that his visit may involve a deal that would ease restrictions on Nvidia selling to the UAE, according to Bloomberg. This potential deal further underscores the UAE's importance as a trade partner in these transactions.
Steve Witkoff, billionaire Trump friend and current U.S. Special Envoy to the Middle East, is the father of Zach Witkoff. Witkoff was present at a meeting with President Trump and his cabinet in the United States in April. During the same month, Eric Trump also announced that the Trump Organization has agreed to build an 80-story Trump International Hotel and Tower in Dubai, part of the UAE.
However, it's important to note that Binance and its founder, Changpeng Zhao, faced allegations in 2023. The Securities and Exchange Commission accused Binance of artificially inflating trading volumes, diverting customer funds, and misleading investors. The ongoing civil lawsuit against Binance was put on hold in February after Trump took office and pledged to ease up on cryptocurrency regulations.
In conclusion, the UAE is at the centre of a web of significant cryptocurrency transactions, involving key players such as Binance, TRON, and the Trump family's World Liberty Financial. As these deals continue to unfold, the relationship between governments and the cryptocurrency industry is set to evolve further.
