World Liberty Financial Invests $10M in Falcon Finance to Boost On-Chain Dollar Ecosystem

World Liberty Financial (WLFI), a decentralized finance (DeFi) project associated with the Trump family, has committed $10 million to Falcon Finance to strengthen the on-chain dollar ecosystem and improve cross-chain compatibility between USD1 and USDf, the stablecoins of the two platforms. The investment is expected to facilitate seamless liquidity sharing, smart contract integration, and multi-chain functionality, reinforcing the broader stablecoin infrastructure [1].

This strategic collaboration aims to enhance the adoption and usability of USD1, a fiat-backed stablecoin backed by 1:1 U.S. dollar reserves, by leveraging Falcon Finance’s overcollateralized and decentralized model [2]. The funding will also support the development of tools that allow the tokens to function across various blockchain networks, improving accessibility and fostering greater DeFi integration [3].

Falcon Finance, which has already reached a circulating supply of over 1 billion USDf since its public launch, is positioned to benefit from WLFI’s established distribution networks, potentially accelerating the adoption of its technology among institutional and retail users [4]. Andrei Grachev, managing partner of Falcon Finance, emphasized that the partnership will introduce efficiency and scalability to on-chain dollar systems, while Zak Folkman, co-founder of WLFI, described the move as a key step in building a comprehensive DeFi infrastructure [5].

The investment comes as WLFI prepares to launch trading of its native token in the next six to eight weeks, enabling peer-to-peer and secondary market transactions [6]. This development is expected to broaden access to the WLFI ecosystem and support the expansion of its stablecoin infrastructure [7].

While the partnership highlights a growing trend of institutional backing for stablecoin ecosystems, the involvement of WLFI—given its political associations—has sparked regulatory and political scrutiny [8]. However, both companies have not indicated any immediate regulatory obstacles, emphasizing their focus on infrastructure development [9].

The collaboration represents a significant advancement in the digital-dollar space, aiming to create a more flexible, secure, and scalable framework for the future of stablecoin usage [10].

Sources:

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

[2] BeInCrypto, 2025-07-21, https://beincrypto.com/world-liberty-financial-invests-10-million-stablecoin/

[3] MEXC, 2025-07-29, https://www.mexc.com/news/world-liberty-financial-bets-10m-on-falcons-cross-chain-stablecoin-play/63004

[4] Our, 2025-07-27, https://web.ourcryptotalk.com/news/trump-linked-wlfi-invests-10m-in-falcon-finance-for-stablecoin-development

[5] falcon.finance, 2025-07-22, https://falcon.finance/news/falcon-finance-secures-10-million-initial-investment-from-world-liberty-financial-to-advance-cross-platform-stablecoin-development

[6] CoinCentral, 2025-07-24, https://coincentral.com/trump-linked-wlfi-backs-falcon-finance-with-10m-to-boost-stablecoin-liquidity/

[7] AInvest, 2025-07-25, https://www.ainvest.com/news/trump-linked-wlfi-invests-10m-falcon-finance-boost-stablecoin-liquidity-2507/

[8] CryptoSlate, 2025-07-24, https://cryptoslate.com/trumps-world-liberty-financial-makes-10m-push-into-falcon-usdf-stablecoin/

[9] Crypto, 2025-07-25, https://crypto-economy.com/trumps-wlfi-invests-10m-in-falcon-finance-to-boost-defi-liquidity-and-stability/

[10] LiveBitcoinNews, 2025-07-30, https://www.livebitcoinnews.com/wlfi-invests-10m-to-strengthen-falcons-stablecoin-ecosystem/