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WLFI, linked to Donald Trump, invests $10M in Falcon Finance to boost stablecoin infrastructure, sparking political and regulatory concerns in the crypto space.
Author: Akshat Thakur
July 39 2025, A new $10 million investment from the Trump-affiliated WLFI platform into Falcon Finance aims to develop stablecoin infrastructure, but it also raises fresh concerns about political influence and regulatory risks.
On Wednesday, blockchain platform World Liberty Financial (WLFI), which is linked to former President Donald Trump, announced a $10 million investment into Falcon Finance. The capital will go toward enhancing liquidity, multichain compatibility, and conversion systems between two stablecoins: Falcon USD (USDf) and WLFI’s USD1.
WLFI’s USD1 was launched in March 2025 and has seen growing use in the digital asset ecosystem, including as collateral for a $2 billion Binance investment via MGX in May. USD1 is directly associated with Eric Trump, and the announcement was made during Token2049 in Dubai.
According to the press release, Falcon Finance will integrate USD1 into its overcollateralized synthetic dollar protocol, aiming to provide a stable and scalable digital dollar alternative.
The partnership announcement arrives amid recent depegging issues with both stablecoins involved. USDf dropped to $0.9783 on July 8, regaining parity only by July 14. Meanwhile, USD1 fell below $1 on July 28 and continues to hover just under parity, raising concerns among investors.
Despite these setbacks, WLFI and Falcon argue that combining an overcollateralized model (Falcon) with a reserve-backed stablecoin (USD1) offers added reliability for global users.
Beyond technical concerns, the deal has ignited political debate. Critics worry that the Trump family’s deepening involvement in blockchain projects like WLFI could influence or stall bipartisan crypto legislation.
A Bloomberg report estimates that crypto ventures have added at least $620 million to Donald Trump’s personal net worth. This includes returns from WLFI-related activities and digital asset investments.
Democratic leaders in Congress, such as Maxine Waters, have voiced strong opposition to Republican-backed crypto bills, including the CLARITY Act and the Anti-CBDC Surveillance State Act. Waters has accused these initiatives of lacking consumer protections and potentially enabling “Trump’s unprecedented crypto scam.”
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