$USD1 and Binance Equity Acquisition
Abu Dhabi investment company MGX, with Abu Dhabi royal background, acquired a stake in Binance. This acquisition symbolizes Binance seeking political protection from the business world to the political world, and the transaction was settled using the $USD1 stablecoin issued by the Trump family foundation WLFI.
Event Timeline
CZ released after serving 4 months in prison
Binance founder CZ was sentenced to prison for violating US anti-money laundering laws and was released after serving his sentence.
Trump family founded WLFI Foundation
A crypto-financial platform initiated by the former President Trump family, aiming to launch their own USD stablecoin. WLFI is registered in Delaware, USA. The founding team includes Eric Trump, son of Donald Trump, and real estate businessman Zach Witkoff. Initially, the Trump family held about 60% of WLFI shares.
Abu Dhabi's MGX announces $2 billion investment in Binance exchange
MGX is a national-level technology fund based in Abu Dhabi, UAE, officially named MGX Artificial Intelligence and Infrastructure Fund. It is a large investment fund funded by the Abu Dhabi government, focusing on 'AI + Fintech'. In March 2025, MGX announced a $2 billion investment in Binance, the world's largest crypto exchange, acquiring a stake. This was one of the largest crypto equity deals of the year.
WLFI officially issues stablecoin $USD1
USD1 became tradable on blockchain, with hundreds of millions issued initially.
MGX decides to use $USD1 as investment currency
MGX decided to use USD1 as the payment tool for the Binance investment. This means the Trump family-issued stablecoin was used in a major equity investment in the world's largest crypto exchange, raising questions about potential 'insider benefit transfer' risks.
WLFI co-founders Eric Trump and Zach Witkoff confirm at Dubai conference: Binance equity acquisition will be settled in $USD1
This is the official public confirmation: MGX will not use traditional USD, but will use WLFI's USD1 as the 'payment currency' to complete the $2 billion Binance equity acquisition. WLFI claims this represents an 'on-chain extension of the US dollar', but it has also sparked intense political and regulatory debate.
Binance announces opening of USD1/USDT trading pair
Binance announced support for USD1 deposit, trading, and withdrawal. The next day (May 23), USD1 could be officially withdrawn, marking the funds as officially available.
US Senators Warren and Merkley send letters to MGX and Binance, asking why USD1 was used instead of other more neutral stablecoins
The US Congress began to focus on the 'transparency' and 'compliance' of this transaction. Two Democratic senators raised sharp questions: Why use a crypto asset issued by a presidential family? Is there a conflict of interest or political manipulation?
Media reveals Trump family reduced WLFI stake from 60% to about 40%
Facing regulatory pressure, the Trump family announced a 'reduction' in holdings, ostensibly to dilute direct control over WLFI, but still retaining governance and profit channels.
USD1 stablecoin market cap surpasses $2.2 billion, with about $2 billion held by Binance
The actual circulating amount of USD1 is not large, with over 90% concentrated at Binance as 'escrow funds' for this deal, meaning the transaction is not fully settled or is still ongoing.