Trump family’s decentralized finance (DeFi) project, World Liberty Financial, has extended its reach into the stablecoin market, investing $10 million into a synthetic dollar protocol.
The investment cements WLFI’s growing influence in the stablecoin market following the recent launch of its own fiat-backed digital asset, USD1.
Trump Family’s DeFi Firm Bets on Falcon Finance’s Stablecoin Project
The funding will bolster Falcon’s technical development in areas such as shared liquidity provisioning. Other areas include multi-chain compatibility and smart contract-based conversions between Falcon’s USDf and WLFI’s USD1.
Falcon Finance’s synthetic dollar, USDf, recently surpassed $1 billion in circulating supply.
USDf is designed to offer institutions and retail users a novel way to access stable digital dollars.
It operates on a dynamic, risk-adjusted overcollateralization model accepting various crypto assets as collateral.
“This investment validates our approach to creating more efficient on-chain dollar instruments for institutional users. We are excited to collaborate with WLFI to redefine digital dollar solutions,” read an excerpt in the announcement, citing Andrei Grachev, Managing Partner of Falcon Finance.
USD1, meanwhile, is fully redeemable 1:1 for the US dollar. It is backed by a reserve of US government money market funds and dollar-denominated cash equivalents.
The asset, which is now tradeable, is now also being used as collateral within Falcon’s protocol.
“This strategic partnership with Falcon Finance represents a significant step forward in our mission to build a comprehensive DeFi ecosystem,” Zak Folkman, co-founder of World Liberty Financial, said in the statement.
WLFI plans to use its distribution network to accelerate Falcon’s global adoption.
Such a move would mark notable alignment between a fiat-backed and synthetic stablecoin model. This is amid a broader race to dominate the next generation of on-chain dollars.
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