Donald Trump’s World Liberty Fund has allocated $10 million to Falcon Finance, a synthetic stablecoin platform, through its USD1 stablecoin project [1]. The investment, announced on July 30, 2025, aims to expand Falcon’s USDf stablecoin infrastructure and improve cross-chain compatibility between USDf and USD1 [2]. This marks Falcon’s first major external investment and highlights growing institutional and political interest in digital dollar solutions.
USDf, Falcon’s primary stablecoin, operates on a multi-asset, risk-adjusted overcollateralization model and maintains a market cap of $1.175 billion [1]. The new investment will be used to develop smart contract modules facilitating direct conversions between USDf and USD1, which is backed by U.S. dollar deposits and money market funds and has a market cap of $2.19 billion [1]. By bridging synthetic and fiat-backed stablecoins, Falcon and WLFI aim to increase liquidity and institutional adoption.
WLFI’s USD1, introduced by the team behind World Liberty Financial, is already accepted as collateral on Falcon’s platform [1]. Andrei Grachev, Managing Partner of Falcon Finance, stated that the investment would allow the firm to “redefine digital dollar solutions” and create “more efficient on-chain dollar instruments for institutional users.” The collaboration is expected to boost the adoption of on-chain dollar systems and challenge established stablecoins like USDT and USDC [1].
The investment underscores the growing intersection of politics and crypto. Trump, whose cryptocurrency-related assets are estimated to have gained at least $620 million recently, has positioned himself as a key player in the digital asset space [1]. His wealth includes TMTG stock, which accounts for $2.2 billion of his total estimated fortune of $6.6 billion [1]. The convergence of his political influence and financial exposure to crypto has drawn concerns about potential conflicts of interest [1].
Falcon Finance, developed by DWF Labs—co-founded by Grachev—operates through entities in the British Virgin Islands and Singapore and has drawn attention for its aggressive market-making strategies in Asia and the Middle East [1]. While some question its regulatory clarity and business model transparency, the investment from WLFI appears to affirm Falcon’s strategy in on-chain finance.
The political and financial context adds another layer to the deal. Nearly 70 individuals in the Trump administration have been reported to hold cryptocurrency or investments in blockchain firms, with disclosed holdings exceeding $2 million [1]. Critics warn this trend could normalize speculative crypto assets among public officials and create conflicts of interest [1].
As Falcon Finance and WLFI integrate their stablecoin systems, the development mirrors a broader trend of institutional and political actors entering the DeFi space. Enhanced liquidity and cross-chain compatibility could reshape stablecoin competition and influence the future of digital finance.
Sources:
[1] Falcon Finance Secures $10M Strategic Investment from … https://cryptonews.com/news/falcon-finance-secures-10m-strategic-investment-from-trump-linked-wlfi-project/
[2] Trump-Linked WLFI Backs Falcon Finance With $10M to … https://coincentral.com/trump-linked-wlfi-backs-falcon-finance-with-10m-to-boost-stablecoin-liquidity/
