Key Takeaways
- The $2 billion MGX-Binance deal will be settled in WLFI’s USD1 stablecoin.
- Eric Trump announced this partnership at the TOKEN2049 event.
- USD1’s role in the Binance deal could give it a significant boost in the stablecoin market.
A $2 billion investment deal between Abu Dhabi-based tech investor MGX and Binance is grabbing headlines, not just for its size, but for how it’ll be settled, in stablecoin USD1, issued by World Liberty Financial (WLFI).
The deal marks a breakout moment for USD1 and one of the most high-profile institutional uses of a stablecoin to date.
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WLFI’s USD1 Takes Center Stage in Binance Deal
Eric Trump, executive vice president of the Trump Organization, made the announcement on stage at TOKEN2049 in Dubai, appearing alongside WLFI’s Zach Witkoff and TRON founder Justin Sun.
“USD1 will become one of the world’s most transparent and regulated stablecoins,” Trump said, highlighting that it’s backed by short-term U.S. Treasuries and cash equivalents.
The announcement marks a major milestone for WLFI, which launched USD1 in March as part of a broader push into crypto spearheaded by Trump’s sons.
While the stablecoin market remains dominated by Tether’s USDT and Circle’s USDC, USD1’s role in this $2 billion deal offers a rare opportunity to break into a tightly held space, especially as regulators begin to scrutinize the sector more closely.
The deal also gives MGX a minority stake in Binance . That added layer makes the use of USD1 not just symbolic, but a potential bellwether for how institutional players might approach stablecoin adoption in future deals, particularly when regulatory clarity is part of the pitch.
Expansion to Tron Aims To Scale Adoption
Initially launched on Ethereum, the company also said USD1 would soon be integrated natively into the Tron network.
This integration, announced alongside the Binance deal, marks a key milestone for the Trump-affiliated DeFi project, which is looking to scale adoption through faster and cheaper blockchain infrastructure.
Tron has played a major role in the rise of stablecoins, particularly Tether’s USDT, which now sees more than $70 billion in circulation on the network.
Its speed and low fees have made it a go-to platform for cross-border payments and on-chain financial transactions.
WLFI is hoping to follow a similar path. By expanding to Tron, USD1 could tap into the same market dynamics that helped USDT dominate the stablecoin landscape.
With an eye on both institutional partnerships and regulatory alignment, the company says it aims to position USD1 as a compliant, scalable alternative in a space long dominated by Tether and Circle.
Challenging a Stablecoin Duopoly
Despite years of competition, the stablecoin market remains heavily concentrated. Tether’s USDT commands more than 70% of the global market , while Circle’s USDC holds another 25%.
The remaining 5% is split among dozens of smaller players, many of which have struggled to gain traction or survive regulatory scrutiny.
USD1 aims to change that, but the road ahead won’t be easy. Stablecoins have faced repeated hurdles, from failed algorithmic designs to regulatory ambiguity.
Even major players like Tether have been dogged by concerns over transparency and asset backing.
WLFI’s strategy appears to be positioning USD1 as a fully collateralized, regulator-friendly option, possibly eyeing a future where the U.S. enforces stricter compliance for stablecoins used within its financial system.
If that happens, USD1 could carve out space among institutions and regulated exchanges.
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