Trump's Crypto Project WLFI Invests $10 Million in Falcon Finance to Develop Stablecoin Infrastructure
On July 31st, World Liberty Financial (WLFI), a crypto project associated with US President Donald Trump, announced a $10 million investment in Falcon Finance. The investment aims to build liquidation infrastructure and multi-chain interoperability between two stablecoins: Falcon USD (USDf) and World Liberty Financial USD (USD1).
The USD1 Token – launched in March 2025 and involving Eric Trump, Donald Trump's son – will be used as collateral on Falcon Finance. The investment from WLFI will support Falcon Finance in deploying rapid conversion mechanisms, building shared liquidation, and optimizing blockchain compatibility for these two stablecoins.
According to Falcon Finance representatives, this infrastructure aims to allow users to seamlessly convert between USD1 and USDf across multiple networks while improving the overall liquidation of the stablecoin ecosystem.
During the Token2049 conference held in Dubai last May, Eric Trump revealed that USD1 was used to pay for MGX's $2 billion investment in the Binance exchange.
Zak Folkman, co-founder of World Liberty Financial, stated that this strategic partnership aims to create a more flexible and sustainable "digital dollar infrastructure" that meets the needs of both institutional investors and global retail users. He emphasized that Falcon's Over-Collateralization model combined with USD1's one-to-one guarantee mechanism will help build a reliable synthetic dollar alternative.
Falcon Finance currently accepts multiple asset types as collateral to create synthetic stablecoins using an over-collateralization model. With a 1:1 convertibility and reserve asset guarantee mechanism, USD1 is expected to enhance stability and reliability in Falcon's stablecoin ecosystem.
This investment announcement came just three weeks after USDf – Falcon's primary stablecoin – previously dropped below its 1 USD peg, falling to 0.9783 USD on July 8th, causing concerns in the investment community about the quality of underlying collateral assets. However, USDf recovered to the 1 USD mark on July 14th.
