17 February 2026
World Liberty Financial (WLFI), the DeFi initiatives affiliated with former President Donald Trump, has invested heavily this week, with over $11 million in Ethereum and a new stablecoin project. These moves underscore WLFI's growing ambition to build a robust blockchain infrastructure and strengthen its presence in the digital asset ecosystem.
On July 30, WLFI announced it had invested $10 million in Falcon Finance, a protocol for synthetic stablecoins. This capital injection is intended to develop Falcon's multi-chain interoperability, enhance its smart contract modules, and support liquidity mechanisms between Falcon's USDf and World Liberty Financial's USD1 stablecoin. Notably, USD1 is also used as collateral within the Falcon protocol.
Falcon's USDf stablecoin recently surpassed the $1 billion circulating supply milestone, highlighting the growing demand for decentralized dollar-pegged assets. USDf is unique in that it operates on an overcollateralization model, which adapts to risk in real time. This allows the protocol to accept various digital assets as collateral while ensuring price stability.
At the same time, USD1 complements USDf by serving as a fiat convertible asset. This stablecoin is backed by a reserve of US dollar deposits, government money market funds, and other short-term assets, providing an additional layer of trust and liquidity.
Zak Folkman, co-founder of WLFI, stated that this collaboration aligns with the project's broader goal of transforming 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 meets the diverse needs of both retail and institutional users in the global marketplace."
The investment in the stablecoin project follows WLFI's increased exposure to Ethereum with recent acquisitions. On July 29, blockchain analytics platform Lookonchain reported that the DeFi project acquired 256,75 ETH in July at an average price of $3.895 each, for a total of $1 million. This followed the purchase of 3.473 ETH the previous week, which were then staked through the DeFi lending platform Aave.
After these purchases, World Liberty Financial now holds approximately 77.226 ETH, worth approximately $296 million at current prices. The firm also has unrealized profit potential of approximately $42 million, illustrating WLFI's strong position in the current market.
How is WLFI strengthening its position within the crypto industry?
WLFI is expanding its position through substantial investments in Ethereum and established stablecoin projects such as Falcon Finance, contributing to the development of innovative and stable financial instruments.
What is unique about the USDf stablecoin?
USDf operates on an over-collateralization model that adjusts risk in real time, allowing it to accept various digital assets as collateral while ensuring price stability.
What are the implications of WLFI's recent investments for the European crypto market?
The investments point to a growing interest in integrating traditional finance with DeFi solutions, which could potentially even stimulate new collaborations and structures within the European crypto market.
Bitcoin (BTC)
Ethereum (ETH)
XRP (XRP)
