Trump’s World Liberty Financial Bets Big: $10M Plunge into Falcon USDf Stablecoin Shakes Crypto Markets
Politics meets DeFi as a Trump-linked entity makes its boldest crypto play yet.
World Liberty Financial—the financial arm of Trump’s empire—just dropped a $10 million bombshell into Falcon USDf, a stablecoin that’s been flying under the radar. No vague "exploring blockchain" press releases here—this is cold, hard capital moving on-chain.
Why This Stablecoin? Why Now?
Falcon USDf isn’t your grandma’s Tether. Backed by an obscure mix of "liberty-focused assets" (read: probably not just Treasuries), it’s the type of coin that gets hedge fund managers sweating into their silk pocket squares. Perfect for a Trump-branded financial group, really.
The $10M Signal
Institutional money talks—especially when it’s tied to polarizing figures. This move screams confidence in stablecoins beyond the usual USDC/GUSD duopoly. Or maybe it’s just a hedge against dollar collapse. With Trump, you never get just one narrative.
Cynical take? Another financial vehicle discovers that "digital assets" generate more headlines than municipal bonds ever could. But $10M is $10M—and in crypto’s 2025 landscape, that’s enough to move markets.
Falcon Finance
On July 30, WLFI announced that it invested $10 million in Falcon Finance, a synthetic stablecoin protocol.
According to the statement, the capital will be used to develop Falcon’s multi-chain interoperability, improve smart contract modules, and support liquidity-sharing mechanisms between Falcon’s USDf and World Liberty Financial’s USD1 stablecoin. Notably, USD1 is also being used as collateral within Falcon’s protocol.
Falcon’s USDf stablecoin recently crossed $1 billion in circulating supply, spotlighting rising demand for decentralized dollar-pegged assets.
Unlike traditional stablecoins, USDf operates through an overcollateralization model that adjusts for real-time risk. This allows it to accept a variety of digital assets as collateral while maintaining price stability.
Meanwhile, USD1 complements USDf by serving as a fiat-redeemable asset. It’s backed by a reserve of US dollar deposits, government money market funds, and other short-term cash equivalents, offering an additional LAYER of trust and liquidity.
Zak Folkman, co-founder of WLFI, said the partnership aligns with the project’s broader ambition to reshape digital finance. He added:
“By combining Falcon’s innovative collateralization model with our fiat-backed approach, we are creating a more robust and flexible digital dollar infrastructure that will meet the diverse needs of both retail and institutional users across the global market.”
Ethereum investments
The stablecoin project investment follows WLFI’s deepening of its exposure to Ethereum with new recent purchases.
On July 29, blockchain analysis platform Lookonchain reported that the DeFi project acquired 256.75 ETH in July at an average cost of $3,895 per coin for $1 million.
This follows last week’s purchase of 3,473 ETH, which were then staked via the DeFi lending platform, Aave.
Following these purchases, World Liberty Financial now holds approximately 77,226 ETH, worth around $296 million at today’s prices. The firm also has an unrealized profit of roughly $42 million.
