Trump-Linked Stablecoin USD1 Climbs to 7th Globally After $2B UAE-Backed Deal

USD1, a stablecoin tied to the Trump family, has quickly risen to become the seventh-largest in global circulation. This surge follows a $2 billion deal involving MGX, a crypto firm backed by Abu Dhabi’s sovereign wealth fund. The firm plans to use the stablecoin to settle its investment transactions on the crypto exchange Binance.

The deal was revealed during a crypto conference in Dubai, where MGX committed to USD1 as a settlement currency. This development has stirred controversy in Washington, particularly among lawmakers concerned about crypto’s increasing influence in politics.

Issued by World Liberty Financial, a company co-founded by Eric Trump and crypto investor Zach Witkoff, USD1 is backed by short-term U.S. Treasury assets. It is being positioned as a key settlement currency in major international transactions, including the UAE deal.

Warren Criticizes $2B Deal with UAE

Senator Elizabeth Warren (D-MA) voiced strong opposition to the $2 billion deal involving the Trump family and the United Arab Emirates, which coincided with a surge in the USD1 stablecoin. She accused the family of exploiting the crypto industry for personal gain.

“The Trump family stablecoin surged to 7th largest in the world because of a shady crypto deal with the United Arab Emirates—a foreign government that will give them a crazy amount of money,” Warren tweeted.

Her comments come amid debate over the GENIUS Act, a Republican-led proposal seeking to establish a regulatory framework for stablecoins in the U.S. Warren warned that passing the bill could legitimize such deals and enable further financial benefit for government figures, calling it a form of “corruption.”

The GENIUS Act

The GENIUS Act, introduced by Senator Bill Hagerty (R.TN), passed the Senate Banking Committee in March with bipartisan support. It is now awaiting a vote by the full Senate.

However, momentum has slowed as opposition grows among Democrats. Nine senators, including four who initially backed the bill, have withdrawn their support for it. They cited national security concerns and described the weak oversight of stablecoins with foreign ties.

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