Falcon Finance has landed a $10 million strategic investment from World Liberty Financial (WLFI), a decentralized finance project backed by the Trump family.
Key Takeaways:
Falcon Finance secured a $10M investment from Trump-linked WLFI to expand its stablecoin infrastructure. The firm’s USDf stablecoin uses a multi-asset, risk-adjusted overcollateralization model. New funding will support cross-chain integrations and conversions between USDf and WLFI’s USD1 stablecoin.The deal marks the first major outside funding for Falcon’s stablecoin initiative, aimed at expanding cross-chain compatibility and liquidity across synthetic dollar systems, the project said in a Wednesday press release.
At the core of Falcon’s operations is USDf, a synthetic dollar protocol with a $1.175 billion market cap, according to CoinGecko.
USDf Backed by Multi-Asset Overcollateralization
USDf is collateralized using a risk-adjusted, overcollateralization model that supports multiple asset types.
The new funds will help Falcon develop technical infrastructure that bridges its synthetic stablecoin with WLFI’s fiat-backed USD1, a 1:1 redeemable stablecoin supported by U.S. money market funds and dollar deposits. USD1 currently boasts a $2.19 billion market cap.
Falcon said it will use the investment to build smart contract modules that enable seamless conversions between USDf and USD1, along with integrations across multiple chains.
The move could position both stablecoins to compete more directly with USDT and USDC by offering broader liquidity and more institutional appeal.
“We are excited to collaborate with WLFI to redefine digital dollar solutions,” said Falcon Finance Managing Partner Andrei Grachev.
“This investment validates our approach to creating more efficient on-chain dollar instruments for institutional users.”
Falcon Finance was incubated by DWF Labs, a controversial investment firm co-founded by Grachev. The USDf stablecoin was launched in February and remains tightly linked to DWF Labs’ capital and operations.
DWF, founded by former executives of high-frequency trading firm Digital Wave Finance, has attracted attention for its aggressive investments and market-making practices across Asia and the Middle East.
Despite its growing footprint, DWF Labs has faced criticism over its opaque structure and regulatory status.
The firm is not licensed in most jurisdictions and conducts operations through entities in the British Virgin Islands and Singapore.
Its founding partner Eugene Ng was dismissed in 2024 following allegations of misconduct.
Trump’s Crypto Holdings Make Up Key Portion of His Fortune
Trump’s crypto-linked holdings are also a substantial part of his personal wealth.
Bloomberg’s Billionaires Index estimates that TMTG stock represents $2.2 billion of Trump’s $6.6 billion fortune.
His broader cryptocurrency investments are believed to have gained at least $620 million in recent months.
However, the move is raising concerns among some industry figures. Nick Carter, general partner at Castle Island Ventures and a Trump supporter, said the overlap between Trump’s political influence and his financial exposure to crypto markets could create a conflict of interest.
“It’s always a headache to have businesses with conflicting interests,” he told Bloomberg.
As reported, nearly 70 nominees and officials in the Trump administration reportedly hold crypto or investments in blockchain companies, with holdings ranging from modest sums to over $120 million.
The group includes Vice President JD Vance and seven Cabinet members or nominees, who collectively disclosed at least $2 million in crypto assets.
Critics warn that this creates potential conflicts of interest and normalizes risky crypto investments among public servants.
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