Binance, the globally recognized cryptocurrency exchange, is said to have participated in the development of a stablecoin issued by World Liberty Financial (WLF), a crypto enterprise associated with former US President Donald Trump, according to a report from Bloomberg on Friday. This report is based on information provided by three individuals knowledgeable about the situation.
The exchange is believed to have not only assisted in the creation of the code for WLF’s USD1 stablecoin, but also played a significant role in its promotion and the execution of its largest transaction. WLF, which is backed by Trump and his three sons, officially launched USD1 on March 4.
On March 12, an Abu Dhabi-based investment company, MGX, revealed a $2-billion investment in Binance using a then-unidentified stablecoin. Eric Trump, a co-founder of WLF, stated in May that the investment would be settled using USD1. As per Bloomberg, as of Friday, 90% of all USD1 coins involved in the transaction were still in Binance’s wallets, potentially generating millions in interest for the Trump family.
The purported association between a leading crypto exchange and a business closely linked to the US president raises concerns about potential conflicts of interest and the misuse of political influence for commercial gain. Attempts to seek comments from Binance and World Liberty Financial were not immediately successful.
Changpeng “CZ” Zhao, Binance’s ex-CEO, admitted to a felony charge as part of a settlement with US authorities in 2023. Despite having spent four months behind bars, Zhao expressed his intentions in May to seek a presidential pardon from Trump. Such a pardon might potentially enable Zhao to resume a managerial or operational role at a US-based crypto business. To date, he has not publicly commented on the report.
Trump’s crypto ventures have long been the subject of scrutiny among US legislators. His ties to World Liberty Financial and its stablecoin, the launch of his memecoin, Official Trump (TRUMP), and contributions from crypto executives who backed his campaign have all raised eyebrows.
Coinciding with the Bloomberg report, Republican leaders in the House of Representatives are expected to deliberate on three crypto bills, one of which aims to regulate payment stablecoins in the US. The GENIUS Act, named after one of Trump’s many social media posts, has already received Senate approval and is anticipated to be voted on in the House soon.
Although Democrats in the Senate initially blocked a crucial vote for the stablecoin bill, citing Trump’s crypto interests, it eventually passed with bipartisan backing. However, it remains uncertain whether the bill will garner enough support to pass in the House, where Republicans hold a narrow majority. Trump has indicated that he would promptly sign an unaltered bill if it is passed.
