Trump-Linked WLFI Invests $10M in Falcon Finance to Boost Stablecoin Liquidity

A former U.S. president-linked blockchain platform, World Liberty Financial (WLFI), has announced a $10 million investment in Falcon Finance, a DeFi protocol specializing in stablecoin development and cross-chain interoperability [1]. The funding aims to strengthen the liquidity and integration of two stablecoins: Falcon USD (USDf) and World Liberty Financial USD (USD1), a token launched by WLFI in March [2]. The investment will be used to develop shared liquidity infrastructure, enabling seamless conversion and multichain compatibility between the two tokens [3].

The USD1 stablecoin, associated with Eric Trump, will also function as a collateral asset within Falcon Finance’s synthetic dollar framework [4]. The partnership is expected to enhance the reliability and utility of the synthetic dollar offering, leveraging USD1’s reserve-backed model and USDf’s overcollateralized approach [5]. Falcon Finance’s synthetic dollar protocols accept a range of collateral assets, and USD1’s one-to-one redeemability could serve as an additional liquidity tool [6].

This collaboration comes after USDf temporarily dropped below its $1 peg to as low as $0.9783 in early July, raising concerns over its collateral stability [7]. While USDf has since regained its dollar parity, USD1 has remained slightly undervalued, trading at $0.9993 at the time of writing [8]. The investment aims to address such volatility and improve the overall credibility of the stablecoin infrastructure.

The investment by WLFI highlights a broader trend in the crypto space: increased strategic coordination between stablecoin platforms to enhance liquidity and usability [9]. Falcon Finance described the funding as a milestone in its mission to create a more robust and flexible digital dollar infrastructure for both retail and institutional users [10]. The initiative reflects the growing importance of cross-platform interoperability in the DeFi ecosystem.

The Trump-linked stablecoin developments have sparked discussions around regulatory scrutiny, particularly concerning potential conflicts of interest due to the project’s high-profile affiliations [11]. These concerns are amplified by the ongoing political divide in the U.S. Congress over crypto legislation, where Democratic lawmakers have criticized Republican-backed bills for lacking consumer protections and national security considerations [12]. Maxine Waters, the ranking member of the House Financial Services Committee, has specifically called out crypto legislation as a “dangerous” package that could enable what she called “Trump’s unprecedented crypto scam.”

The investment adds to a growing list of crypto-related ventures that have bolstered Trump’s net worth, which now exceeds $6 billion. According to a Bloomberg report, these ventures have contributed at least $620 million to his wealth [13]. The increasing presence of Trump-family-linked crypto projects in the DeFi space may complicate the regulatory landscape and influence the direction of U.S. crypto policy.

The development is also significant in terms of market dynamics, as USDf has reached a circulation of $1 billion, demonstrating strong market confidence in Falcon Finance’s model [14]. The strategic alignment between WLFI and Falcon Finance could position both USDf and USD1 as key players in the evolving DeFi landscape, where stablecoin interoperability and liquidity are increasingly vital [15].

Source:

[1] Cointelegraph

https://cointelegraph.com/news/trump-wlfi-invests-10m-falcon-finance-stablecoin

[2] CoinDesk

https://www.coindesk.com/business/2025/07/30/wlfi-invests-usd10m-in-falcon-finance-to-boost-on-chain-dollar-liquidity

[3] CoinCentral

https://coincentral.com/trump-linked-wlfi-backs-falcon-finance-with-10m-to-boost-stablecoin-liquidity/

[4] falcon.finance

https://falcon.finance/news/falcon-finance-secures-10-million-initial-investment-from-world-liberty-financial-to-advance-cross-platform-stablecoin-development

[5] advfn.com

https://mx.advfn.com/bolsa-de-valores/COIN/VELOUSD/crypto-news/96524756/trump-linked-wlfi-invests-10m-in-falcon-finance-f

[6] Finbold

https://finbold.com/falcon-finance-secures-10-million-initial-investment-from-world-liberty-financial-to-advance-cross-platform-stablecoin-development/

[7] Coinlive

https://www.coinlive.com/en/news-flash/863118

[8] BeInCrypto

https://beincrypto.com/world-liberty-financial-invests-10-million-stablecoin/

[9] CoinMarketCap

https://coinmarketcap.com/community/articles/688a27b2992943384be55997/

[10] Cointelegraph

[11] advfn.com

[12] Bloomberg

https://www.bloomberg.com/news/articles/crypto-ventures-boost-trumps-net-worth-to-over-6-billion

[13] Bloomberg

[14] Coinlive

[15] BeInCrypto