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World Liberty Financial (WLFI), a platform linked to former U.S. President Donald Trump’s family, has announced a $10 million investment in Falcon Finance, a synthetic stablecoin protocol, to support the development of cross-platform stablecoin infrastructure [1]. The investment aims to enhance liquidity and interoperability between Falcon Finance’s Falcon USD (USDf) and WLFI’s World Liberty Financial USD (USD1), a stablecoin launched by WLFI in March [2]. Falcon Finance plans to use the funding to develop shared liquidity, multichain compatibility, and fast conversion infrastructure between the two stablecoins [3].
USD1, associated with Trump’s son Eric, will also serve as collateral on Falcon Finance’s platform [4]. This collaboration is expected to create a “more robust and flexible digital dollar infrastructure” for both retail and institutional participants, according to Zak Folkman, co-founder of World Liberty Financial [5]. Falcon Finance’s synthetic dollar protocols already accept a range of collateral assets, and USD1’s one-to-one redeemability and reserve-backed structure are intended to complement Falcon’s synthetic dollar offerings as an additional collateral asset [6].
The announcement follows a period of volatility for both USDf and USD1. In early July, USDf fell below its $1 peg to as low as $0.9783, raising concerns about the synthetic overcollateralized stablecoin’s collateral quality [7]. Although USDf regained its $1 parity by July 14, USD1 has yet to fully recover, trading at $0.9993 as of the time of the report [8]. The investment comes amid growing regulatory scrutiny of the Trump-family-linked blockchain activities and rising political tensions over U.S. crypto legislation [9].
WLFI’s involvement in the crypto space has sparked debate, particularly as crypto-related ventures have added at least $620 million to Trump’s estimated $6 billion net worth [10]. The political divide has deepened in the U.S. Congress following Democratic leaders’ rejection of Republican-backed crypto legislation, including the Anti-CBDC Surveillance State Act and the CLARITY Act [11]. Critics argue that these bills lack necessary consumer protections and could enable what they describe as “Trump’s unprecedented crypto scam” [12].
The investment reflects a broader strategy by WLFI to expand USD1’s utility and market presence, with reports indicating its use in significant transactions, such as settling a $2 billion investment into Binance Exchange [13]. Analysts suggest that the growing influence of Trump-linked crypto projects may further complicate the regulatory landscape and delay the passage of comprehensive blockchain legislation in the U.S. [14].
Sources:
[1] Cointelegraph – [https://cointelegraph.com/news/trump-wlfi-invests-10m-falcon-finance-stablecoin](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](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/](https://coincentral.com/trump-linked-wlfi-backs-falcon-finance-with-10m-to-boost-stablecoin-liquidity/)
[4] advfn.com – [https://mx.advfn.com/bolsa-de-valores/COIN/VELOUSD/crypto-news/96524756/trump-linked-wlfi-invests-10m-in-falcon-finance-f](https://mx.advfn.com/bolsa-de-valores/COIN/VELOUSD/crypto-news/96524756/trump-linked-wlfi-invests-10m-in-falcon-finance-f)
[5] BeInCrypto – [https://beincrypto.com/world-liberty-financial-invests-10-million-stablecoin/](https://beincrypto.com/world-liberty-financial-invests-10-million-stablecoin/)
[6] Coinlive – [https://www.coinlive.com/en/news-flash/863118](https://www.coinlive.com/en/news-flash/863118)
[8] Finbold – [https://finbold.com/falcon-finance-secures-10-million-initial-investment-from-world-liberty-financial-to-advance-cross-platform-stablecoin-development/](https://finbold.com/falcon-finance-secures-10-million-initial-investment-from-world-liberty-financial-to-advance-cross-platform-stablecoin-development/)
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Trump-linked WLFI invests $10M in Falcon Finance to boost stablecoin liquidity – AInvest
