Trump-backed WLFI and Vaulta forge regulatory-compliant Web3 banking alliance in US

World Liberty Financial (WLFI), a blockchain initiative linked to former U.S. President Donald Trump, has announced a strategic partnership with Vaulta, the rebranded EOS Foundation, to develop a Web3 banking infrastructure in the United States. The collaboration aims to integrate WLFI’s USD1 stablecoin into Vaulta’s blockchain-based platform, positioning the alliance as a regulatory-compliant solution for decentralized finance (DeFi) and cross-border transactions. This move marks WLFI’s shift from an ideological focus to infrastructure-driven DeFi, while Vaulta, previously known for the EOS blockchain, emphasizes its transformation into a “banking operating system” with high-speed settlements and cross-chain interoperability [1].

The partnership, formalized via a July 23 press release, underscores WLFI’s efforts to align with U.S. financial regulations by offering a stablecoin backed by U.S. Treasuries and cash equivalents. Vaulta will integrate USD1 into its digital banking framework, enabling users to conduct on-chain dollar transactions without relying on traditional intermediaries. Zak Folkman, WLFI’s co-founder, stated the alliance aims to “build the connective tissue between traditional finance and DeFi,” ensuring accessibility for both retail users and institutions [1].

Vaulta’s rebranding from the EOS Foundation reflects its pivot toward institutional-grade services, with a focus on real-world asset tokenization and cross-border payment solutions. The alliance also aligns with broader industry trends, including Citigroup’s recent explorations of stablecoin issuance and legislative efforts like the GENIUS Act, which seeks to establish a federal framework for stablecoins in the U.S. [2]. These developments highlight growing institutional interest in blockchain-based financial tools, driven by demand for faster, lower-cost transactions and regulatory clarity.

WLFI’s recent strategic moves include purchasing 3,400 ETH ($13 million) to expand its $275 million Ethereum reserve, a decision that signals aggressive treasury diversification. Governance token holders have also approved a proposal to make the token tradable within weeks, further embedding WLFI into the broader crypto market. The company’s 60% ownership by Trump’s family has drawn scrutiny, with critics raising concerns about potential conflicts of interest or foreign influence over U.S. policy [1]. However, WLFI maintains that USD1’s compliance-focused approach distinguishes it from unregulated stablecoins, offering a secure alternative for risk-averse institutions.

The alliance’s success will depend on its ability to navigate complex regulatory environments while maintaining technical scalability. Vaulta’s infrastructure supports enterprise-grade DeFi applications and near-instant settlements, but challenges remain in interoperability with legacy financial systems. Meanwhile, WLFI’s political connections may provide a competitive edge in a market where trust and regulatory approval are critical.

As the U.S. and global regulators refine stablecoin policies, WLFI and Vaulta’s collaboration reflects the increasing convergence of politics, technology, and finance in the Web3 era. While the partnership is still in its early stages, it positions the firms to compete with traditional banks and fintech players seeking to leverage blockchain innovation. The outcome will likely hinge on regulatory developments, market adoption, and the ability to balance innovation with compliance.

Source: [1] [title: Trump-backed WLFI and Vaulta forge Web3 banking alliance in US] [url: https://coinmarketcap.com/community/articles/68813ce1439cf10408b23c82/]

[2] [title: Trump-backed WLFI and Vaulta forge Web3 banking alliance in US] [url: https://crypto.news/trump-backed-wlfi-and-vaulta-forge-web3-banking-alliance-in-us/]