World Liberty Financial (WLFI), a blockchain platform with ties to Donald Trump, has invested $10 million in Falcon Finance to bolster stablecoin infrastructure development. The investment aims to enhance the liquidity and interoperability between Falcon USD (USDf) and World Liberty Financial USD (USD1), a token launched by WLFI in March.
Falcon Finance will utilize the $10 million to establish shared liquidity, multichain compatibility, and rapid conversion infrastructure between USDf and USD1. The USD1 token, associated with Eric Trump, will also serve as collateral on Falcon Finance. In May, Eric Trump announced that USD1 was used to settle MGX’s $2 billion investment into Binance Exchange during Token2049 in Dubai.
Zak Folkman, co-founder of World Liberty Financial, stated that the partnership aims to create a “more robust and flexible digital dollar infrastructure” for both retail and institutional participants. He added 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 follows a period of volatility for both stablecoins. On July 8, Falcon’s USDf dropped below its $1 peg, reaching a low of $0.9783, raising investor concerns about its collateral quality. USDf regained its dollar parity by July 14. Similarly, WLFI’s USD1 lost its dollar peg on Tuesday, falling to $0.9954. As of the time of writing, USD1 had not fully recovered, trading at $0.9993, according to CoinMarketCap data.
The growing involvement of the Trump family-linked blockchain platform in the crypto space has raised concerns among some industry watchers about the potential impact on emerging US blockchain legislation. According to a Bloomberg report, crypto-related ventures have added at least $620 million to Trump’s net worth, which is estimated to be over $6 billion.
Meanwhile, political divisions are deepening in the US Congress regarding crypto legislation. Democratic Party members in the House of Representatives have announced a collective effort to oppose Republican efforts to pass what they deem “dangerous” legislation. House Financial Services Committee ranking member Maxine Waters has specifically criticized the Anti-CBDC Surveillance State Act, which would prohibit the launch of a US central bank digital currency, and the CLARITY Act, which seeks to define the structure of digital asset markets.
Waters stated that these bills lack urgently needed consumer protections and national security guardrails, and that they would make Congress complicit in what she termed “Trump’s unprecedented crypto scam.”
