World Liberty Financial, a decentralized finance platform associated with President Donald Trump, has invested $10 million in Falcon Finance to advance its USDf stablecoin, a synthetic dollar protocol aimed at enhancing onchain liquidity.
What Happened: The investment, announced today, will support Falcon's technical integrations, including shared liquidity provisioning, multi-chain compatibility, and smart contract modules for seamless conversions between USDf and World Liberty's USD1 stablecoin.
Falcon Finance, based in Dubai, recently surpassed a $1 billion circulating supply for USDf, reflecting strong market demand for its innovative digital dollar approach.
The platform operates a synthetic dollar protocol with a dynamic, risk-adjusted overcollateralization model, accepting various collateral types.
Andrei Grachev, Managing Partner at Falcon Finance, stated, "This investment validates our approach to creating more efficient on-chain dollar instruments for institutional users, and WLFI's distribution network will help accelerate adoption of our technology.”
World Liberty Financial's USD1, launched in March 2025, is a dollar-pegged stablecoin backed by U.S. treasuries, dollar deposits, and cash equivalents.
The integration of USD1 as collateral on Falcon's platform strengthens the partnership, aiming to create a robust digital dollar infrastructure for retail and institutional users.
Zak Folkman, co-founder of World Liberty Financial, emphasized, "This strategic partnership with Falcon Finance represents a significant step forward in our mission to build a comprehensive DeFi ecosystem."
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Why It Matters: World Liberty Financial has made significant investments in the cryptocurrency sector.
In April 2025, DWF Labs invested $25 million in World Liberty Financial, providing liquidity for USD1.
In May 2025, Abu Dhabi-based MGX utilized USD1 for a $2 billion investment in crypto exchange Binance, highlighting the stablecoin's growing influence.
Additionally, a United Arab Emirates-based fund, Aqua 1 Foundation, purchased $100 million worth of World Liberty's WLFI tokens in June 2025, marking it as the largest publicly known investor in the project.
Chinese billionaire Justin Sun also invested $75 million in WLFI tokens, further solidifying World Liberty's financial backing.
The company, closely tied to the Trump family, has drawn attention for its rapid growth and controversial connections.
A Trump business entity owns 60% of World Liberty Financial, with Eric Trump and Donald Trump Jr. serving as Web3 ambassadors, and the family holding 22.5 billion WLFI units.
Despite its financial success, the firm has faced criticism from government ethics experts over potential conflicts of interest, particularly following the Binance deal and the Securities and Exchange Commission's decision to pause an investigation into Sun's companies in February 2025.
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