Trump linked WLFI Invests $10M in Falcon Finance for Stablecoin Development

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.

WLFI and Falcon Finance Partnership Explained

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.

Stablecoin Peg Worries Surface Again

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.

Political Influence Raises Questions

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.”

What Has Happened So Far

• March 2025: WLFI launches USD1 stablecoin.
• May 2025: USD1 used in $2B MGX investment into Binance, announced by Eric Trump.
• July 8, 2025: Falcon’s USDf loses peg, falls to $0.9783.
• July 14, 2025: USDf regains parity.
• July 28, 2025: USD1 falls to $0.9954, has not yet regained full parity.
• July 29, 2025: WLFI announces $10M investment into Falcon Finance.