Trump-Backed USD1 Stablecoin Will Become Part of Binance Deal: New Mode in Crypto World
Dubai, May 1, 2025 — Another big news has come in the crypto world! USD1 stablecoin, launched with the support of former US President Donald Trump, has now become part of a historic crypto deal. When Abu Dhabi’s sovereign wealth fund MGX bought a $2 billion minority stake in Binance, it chose USD1 stablecoin for payment. This announcement was made by Trump’s son Eric Trump at Dubai’s Token2049 event.
This deal has not only brought USD1 into the spotlight, but it has become a milestone moment for the entire crypto ecosystem. Trump himself said that USD1 is the target of making the world’s most “transparent and regulated” stablecoin. And now that it is being used in such a big international deal, it is a big first victory of that vision.
The full story of Binance and MGX Deal
In March 2025, Binance sold its minority stake for the first time, which was valued at $2 billion (approx. ₹17,403 crore). MGX, which is a sovereign wealth fund of Abu Dhabi, has now become the first external shareholder of Binance. Binance founder Changpeng Zhao (CZ) had then said that the entire deal would be executed through 100% stablecoins, making it the world’s largest single crypto transaction.
Now that USD1 has been chosen for this deal, it means that Trump’s stablecoin is directly entering the mainstream ecosystem of crypto.
What is USD1 Stablecoin?
USD1 was launched in April 2025, in a very low-key way. This token is being developed and managed by World Liberty Financial (WLF) – a Web3 firm launched last year by Donald Trump and his associates.
According to data from CoinMarketCap, USD1 is currently among the top 300 crypto assets and its current market cap is approx. $137.02 million (₹1,160 crore).
Its reserves are held by custody firm BitGo, while liquidity will be managed by BitGo Prime, a brokerage service. This setup ensures that USD1 has a strong backing and no liquidity issues.
Tech Pe Focus: Minting on Ethereum and BSC Blockchains
The USD1 token is currently being minted on two blockchains – Ethereum (ETH) and Binance Smart Chain (BSC). But in the future, there are plans to integrate it with other blockchains as well. This means that users will be able to make cross-chain transfers without any major delay.
Eric Trump said at the Token2049 event, “USD1 is designed to be backed by short-term treasury and cash equivalents, allowing seamless cross-border transfers.”
This statement clearly shows that the vision of USD1 is to be a purely transactional stablecoin, which can be transferred instantly without the need for banks or traditional systems.
New Era for Crypto?
Experts are calling this development a turning point. For the first time, a coin launched with the support of a high-profile political figure has been used in such a big international business deal. This could also be a signal that political influence is about to come to the crypto markets.
Many new investors and financial institutions could be interested in USD1 after this deal. Trump has made it clear that USD1 will become not just a stablecoin, but a “financial freedom tool” that will decentralize the global economy.
What to expect next?
Wider blockchain adoption of USD1
More government-affiliated funds using crypto
New discussions about the regulation of stablecoins
More strategic partnerships of Binance with state-backed entities
The use of Trump-backed USD1 in the Binance-MGX deal is not just a crypto transaction, but also a political and economic statement. This shows that the future of stablecoins is not just limited to DeFi or Web3, but their role is also being formed in global financial systems.
This is a historic moment for the crypto world – and perhaps the beginning of a new decentralized global financial era.