A stablecoin introduced by Donald Trump's World Liberty Financial cryptocurrency initiative is being utilised by an investment firm in Abu Dhabi

It's the most recent in a series of cryptocurrency initiatives by the Trump family, including a "meme coin" that was introduced in January

An investment firm in Abu Dhabi is using a stablecoin introduced by Donald Trump’s World Liberty Financial cryptocurrency initiative for its $2 billion investment in the crypto exchange Binance, a co-founder of World Liberty said on Thursday.

This is the latest in a series of cryptocurrency initiatives by the Trump family, including a “meme coin” that was launched in January, which have drawn criticism from political opponents and government ethics specialists over potential conflicts of interest.

World Liberty, which aims to provide individuals with unhindered access to financial services without intermediaries like banks, announced in March its plan to introduce USD1, a stablecoin pegged to the dollar and backed by U.S. Treasuries, dollars, and other cash equivalents.

At a crypto conference in Dubai, Zach Witkoff, co-founder of World Liberty, said USD1 would facilitate the investment from Abu Dhabi's MGX into Binance, the world's largest crypto exchange.

"We are thrilled to announce today that USD1 has been selected as the official stablecoin to finalize MGX's $2 billion investment in Binance," said Witkoff, the son of Trump's special envoy to the Middle East, Steve Witkoff.

Democratic Senator Elizabeth Warren strongly criticized the initiative and the upcoming U.S. legislation regarding stablecoins in an email to the Republican-led Senate.

A fund "backed by a foreign government just disclosed that it will participate in a $2 billion transaction using Donald Trump's stablecoins," said Warren, a member of the U.S. Senate Banking Committee. Meanwhile, the Senate is set to approve the 'GENIUS' Act - legislation for stablecoins that will help the President and his family get "fantastically rich."

"This is malfeasance, and no senator should vote for it," he added.

The White House and World Liberty Financial did not immediately respond to requests for comment.

The inclusion of USD1 in the deal highlights World Liberty's expanding footprint in the global crypto market and its ties to Binance. USD1 is created on the Binance blockchain.

Stablecoins are becoming a more profitable part of the global crypto trading ecosystem. The entities that issue them - usually gain by earning interest from the Treasuries and other underlying assets.

According to data from CoinMarketCap, the circulation value of USD1 reached about $2.1 billion on Wednesday, making it one of the fastest-growing stablecoins. However, the identity of its key holders is still unknown.

An anonymous cryptocurrency wallet holding $2 billion in USD1 received the funds from April 16 to 29, according to information from the crypto research firm Arkham.

Reuters was unable to determine the owner of this wallet.

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Changpeng Zhao, the founder and former CEO of Binance, who was jailed in the U.S. last year after admitting to breaking U.S. financial crimes, posted a photo of the two men together on Thursday with the caption: "It was great to visit our friends."

Zhao, who stepped down from his role at Binance in 2023 as part of a $4.3 billion settlement with the U.S. over accusations of illegal financial activities, still holds a significant stake in Binance.

Separately, Zach Witkoff said USD1 would be integrated into Tron, the blockchain created by Hong Kong's crypto mogul Justin Sun.

Sun is the largest known investor in World Liberty and serves as an advisor to the venture, according to his social media posts, having invested at least $75 million in the initiative.

At the time of his initial investment in World Liberty, Sun was facing a U.S. securities fraud lawsuit. In February, the U.S. Securities and Exchange Commission dropped its case against him, citing the public interest.

Sun moderated the panel featuring Witkoff on Thursday, where Trump's son, Eric Trump, was also present.

The U.S. president, who campaigned on pledges to become a "crypto president," has promised to overhaul federal regulations on cryptocurrency.

Trump assigned the management of his assets to his children before his return to the White House, and he will not be involved in daily decision-making, his company said.