Financial disclosures reveal a significant increase in income linked to the Trump family since August, now totaling $3.5 billion – a $100 million rise. This income stems from investments in both American Bitcoin and a digital finance startup, World Liberty Financial, raising questions about potential conflicts of interest and the influence of foreign entities.
American Bitcoin and Stock Market Gains
In September, American Bitcoin went public through a merger with a penny-stock bitcoin miner, bypassing the traditional initial public offering process. The stock market has reportedly valued the company highly, in part due to its bitcoin holdings. Donald Trump Jr.’s stake in American Bitcoin is currently valued at approximately $100 million, while Eric Trump’s stake requires reporting of any sales, which could potentially impact the stock price.
World Liberty Financial and the USD1 Stablecoin
The Trump family is heavily involved with World Liberty Financial, with the President listed as “co-founder emeritus” and Eric, Donald Jr., and Barron Trump all identified as co-founders. The company launched USD1, a stablecoin designed to maintain a fixed value of one dollar, in May. USD1 is backed by investments in U.S. Treasury bonds, allowing World Liberty to earn over four percent annually on circulating volume.
UAE Investment and Binance Connection
A company owned by the rulers of the United Arab Emirates purchased $2 billion worth of USD1 last spring, coinciding with the UAE’s pursuit of approval from the Trump Administration for sensitive artificial intelligence technology. This approval was subsequently granted. The UAE then invested the stablecoin into Binance, the largest crypto exchange.
Binance’s founder, Changpeng Zhao, pleaded guilty to violating anti-money-laundering laws in 2023 and served a prison sentence. He had petitioned for a pardon from President Trump at the time of the USD1 investment from the UAE, and that pardon was granted in October. Binance, as the holder of the stablecoin, has the ability to influence the profitability of World Liberty Financial.
Binance Incentives and USD1 Volume
Binance has recently taken steps to promote USD1, including waiving fees for trades conducted in the stablecoin and offering bonuses to users who hold it. These incentives appear to have significantly increased the volume of USD1 in circulation, rising from approximately $2 billion to roughly $5 billion since December 25th, with most of the expansion occurring on the Binance platform.
Frequently Asked Questions
What is a stablecoin?
Unlike cryptocurrencies like Bitcoin, which fluctuate in value, a stablecoin is designed to maintain a fixed value, in this case, one dollar. USD1 can be transferred for payments and redeemed for dollars.
What role did Changpeng Zhao play?
Changpeng Zhao, the founder of Binance, pleaded guilty to violating anti-money-laundering laws and received a pardon from President Trump while the UAE’s investment in USD1 was held by Binance.
How is World Liberty Financial earning money?
World Liberty Financial invests the cash it holds from USD1 holdings in U.S. Treasury bonds, earning more than four percent annually at current interest rates.
As Binance continues to incentivize the use of USD1, it remains to be seen whether this trend will continue and what impact it will have on the long-term profitability of World Liberty Financial and the Trump family’s financial interests.
