The Trump family’s decentralized financial (DEFI) project, World Liberty Financial, has expanded its scope to the Stablecoin market and invested $10 million in the synthetic dollar protocol.
Investments have strengthened WLFI’s influence in the Stablecoin market after the recent launch of USD1, a unique Fiat-backed digital asset.
Trump family debt company bets on Falcon Finance’s Stablecoin project
The funding will strengthen Falcon’s technological development in areas such as shared liquidity provisioning. Other areas include multi-chain compatibility and smart contract-based conversion between Falcon’s USDF and WLFI’s USD1.
Falcon Finance’s synthetic dollar, USDF, has recently surpassed its $1 billion distribution supply.
USDF is designed to provide institutions and retail users with a new way to access stable digital dollars.
It works in a dynamic, risk-adjusted radicalisation model that accepts a variety of crypto assets as collateral.
“This investment examines our approach to creating more efficient on-chain dollar equipment for institutional users. We are excited to work with WLFI to redefine our digital dollar solutions,” read an excerpt from the announcement, citing Andrei Grachev, managing partner at Falcon Finance.
USD1, on the other hand, is 1:1 fully redeemable against the US dollar. This is supported by the US government’s money market fund reserves and dollar-controlled cash equivalents.
Currently tradeable assets are still used as collateral within Falcon’s protocol.
“This strategic partnership with Falcon Finance represents a significant step forward in our mission to build an inclusive Defi Ecosystem,” said Zak Folkman, co-founder of World Liberty Financial, in a statement.
WLFI plans to use its distribution network to accelerate Falcon’s global adoption.
Such movements mark a prominent alignment between stablecoin models backed by Fiat. This is amid wider competition to dominate the next generation of on-chain dollars.
Post World Liberty Financial invested $10 million in the Stablecoin project, which first appeared in Beincrypto.