A United Arab Emirates (UAE) fund has invested $100 million in World Liberty Financial, a cryptocurrency business linked to the Trump family. This investment, made by Aqua 1 Foundation, positions it as the largest known investor in the venture. The deal aims to accelerate a blockchain-powered financial ecosystem and expand AI initiatives.
UAE Fund Boosts Trump-Linked Crypto
Aqua 1 Foundation, a Web3-native fund based in the UAE, has acquired $100 million worth of $WLFI governance tokens from World Liberty Financial. This significant investment makes Aqua 1 the largest publicly known holder of these tokens, surpassing previous investors like Tron founder Justin Sun.
- The $WLFI tokens are currently non-tradable but grant holders voting rights on changes to the business’s underlying code. World Liberty Financial has indicated plans to make these tokens transferable in the future.
- Aqua 1 Foundation and World Liberty Financial will collaborate to identify and nurture high-potential blockchain projects, with Aqua 1’s teams assisting in World Liberty’s expansion into South America, Europe, and Asia.
- Additionally, World Liberty Financial intends to support the launch of a separate Aqua 1 fund dedicated to investing in blockchain and artificial intelligence projects within the Middle East.
Strategic Implications and Controversies
This investment follows a previous announcement where an Abu Dhabi-backed firm, MGX, planned to use World Liberty Financial’s stablecoin, USD1, for a $2 billion minority stake acquisition in Binance. This move, revealed at a crypto conference in Dubai by World Liberty Financial co-founder Zach Witkoff alongside Eric Trump, has drawn considerable attention.
- Conflict of Interest Concerns: The use of a Trump-backed cryptocurrency in a state-directed investment deal raises questions about favoritism and potential conflicts of interest, especially given President Trump’s ongoing political involvement and the Trump family’s direct ties to World Liberty Financial.
- Binance’s Role: Binance, the world’s largest crypto exchange, adds another layer of controversy. The exchange previously pleaded guilty to anti-money laundering violations and is under federal oversight. Its founder, Changpeng Zhao, is reportedly seeking a pardon from the Trump administration, leading to scrutiny over the timing and nature of the investment.
- Financial Gains for World Liberty: Stablecoin issuers like World Liberty Financial generate returns by investing the deposits received for their digital tokens. With billions potentially in play, the Trump family and its partners could stand to gain substantial annual interest.
Trump Family’s Crypto Venture
World Liberty Financial, co-founded by Zach Witkoff (son of real estate developer and Trump associate Steve Witkoff), was launched two months before the 2024 U.S. presidential election. Donald Trump serves as the company’s "chief crypto advocate," while his sons, Eric Trump and Donald Trump Jr., are "Web3 ambassadors," and Barron Trump is listed as the project’s "DeFi visionary."
- The company has generated hundreds of millions of dollars in revenue for the Trump family business, with a portion of the proceeds from $WLFI token sales flowing to a Trump-controlled entity.
- The Trump Organization maintains that the president’s assets are managed by a trust overseen by his children, asserting no conflicts of interest.
- Despite these assurances, the venture has faced criticism from Democratic lawmakers and ethics groups regarding potential conflicts of interest, particularly as Congress considers legislation to regulate payment stablecoins.
Sources
- UAE-backed firm to use Trump family crypto to buy $2B stake in Binance, New York Post.
- UAE Company Invests $100M In Trump Family-Backed Crypto Business, Cointelegraph.
- UAE fund buys $100 million in Trump-linked crypto tokens, Profit by Pakistan Today.
- UAE fund buys $100 million of Trump’s World Liberty tokens, Reuters.
- Business leaders court Trump as UAE billionaire promises to spend $20 billion on U.S. data centers<!–
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