Trump-Backed WLFI Invests $10M Into Falcon Finance To Help Build a Stablecoin

The Donald Trump-linked blockchain platform World Liberty Financial (WLFI) has invested $10milion in Falcon Finance to support the development of stablecoin infrastructure.

WLFI Invests Into Falcon For Stablecoin Expansion

WLFI a blockchain platform tied to Trump’s family, has funded Falcon Finance with $10 million to improve liquidity, interoperability, and quick conversion infrastructure between Falcon USD (USDf) and World Liberty Financial USD (USD1).

The USD1 token, linked with Trump’s son Eric, will also be used as collateral on Falcon Finance, a decision that is raising regulatory concerns about possible conflict of interest, after previously being used in May to settle MGX’s $2 billion investment into Binance Exchange, as announced by Eric Trump during a panel discussion at Token2049 in Dubai.

Zak Folkman, co-founder of WLFI, said that the collaboration seeks to create a more stable and flexible digital dollar infrastructure for both retail and institutional participants. He emphasized that Falcon’s overcollateralized model, combined with USD1’s reserve-backed framework, will help deliver a reliable synthetic dollar alternative for global retail and institutional use.

The announcement comes three weeks after Falcon’s USDf dropped below its intended $1 peg to as low as $0.9783 on July 8 before regaining parity by July 14. Meanwhile, the WLFI platform’s USD1 lost its dollar peg, dipping to $0.9954, raising investor concerns over the stability of the assets backing the stablecoin.

Trump’s Crypto Moves Stir Tension in Congress

The Trump-family-linked stablecoin is experiencing significant adoption in the cryptocurrency space. However, some industry watchers are concerned that the growing involvement of the Trump-affiliated blockchain platforms in the crypto space could complicate the approval of U.S. crypto legislation.

According to a report from Bloomberg,  crypto-related ventures have added at least $620 million to Donald Trump’s $6 billion net worth. Meanwhile, political divisions in  Congress are intensifying as leading Democrats have united to oppose Republican-backed crypto bills, calling them dangerous.

Maxine Waters, the top Democrat on the House Financial Services Committee, criticized the Anti-CBDC Surveillance State Act, a Republican-backed bill that would prohibit the launch of a U.S. central bank digital currency, and the CLARITY Act, which seeks to define the structure of digital asset markets. 

She argued that, aside from lacking urgently needed consumer protections and national security guardrails, these bills will tie Congress to what she described as  Trump’s unprecedented crypto scam.