A blockchain firm tied to U.S. President Donald Trump invested $10 million in Falcon Finance to improve liquidity and interoperability between two stablecoins: Falcon USD (USDf) and USD1, launched in March by Trump-affiliated World Liberty Financial (WLFI).
The investment will support shared liquidity, multichain compatibility, and instant conversion between the two tokens, Falcon said on Wednesday. USD1, linked to Eric Trump, will also be accepted as collateral on Falcon Finance’s synthetic dollar platform.
Zak Folkman, co-founder of WLFI, described the partnership as a step toward a more flexible digital dollar system for both retail and institutional users. He said Falcon’s overcollateralized model, paired with USD1’s reserve backing and one-to-one redeemability, would offer a more reliable synthetic dollar option.
The deal comes weeks after Falcon’s USDf briefly lost its dollar peg, dropping to $0.9783 on July 8 before regaining parity by July 14. WLFI’s USD1 also dipped below $1 earlier this week, trading as low as $0.9954. At the time of writing, it was at $0.9993, according to CoinMarketCap.
While the companies say the partnership will strengthen synthetic dollar infrastructure, some industry voices are raising concerns over the growing role of Trump-linked platforms in the crypto market — particularly as U.S. lawmakers continue to spar over crypto regulation.
According to Bloomberg, Trump-affiliated crypto ventures have added around $620 million to the president’s estimated $6 billion net worth.
The political fight over digital asset regulation is also heating up. House Financial Services Committee ranking member Maxine Waters criticized recent Republican-backed bills, including the Anti-CBDC Surveillance State Act and the CLARITY Act, calling them “dangerous” and accusing lawmakers of pushing through legislation that could entrench what she described as “Trump’s unprecedented crypto scam.”
According to a Bloomberg report citing three sources familiar with the matter, Binance played a role not only in the code development of USD1 but also in its promotion and one of its biggest transactions to date.
WLF unveiled USD1 on March 4. Just over a week later, Abu Dhabi-based investment firm MGX announced a $2 billion investment in Binance, using what was at the time an unnamed stablecoin. Eric Trump, one of WLF’s co-founders, confirmed in May that the firm used USD1 to settle the deal.
Bloomberg’s sources say that around 90% of the USD1 involved in the transaction remained in Binance-controlled wallets as of Friday—potentially earning tens of millions of dollars in interest for Trump’s family.
The reported connection between the world’s largest crypto exchange and a company so closely tied to the U.S. president is likely to fuel concerns over conflicts of interest, political favoritism, and regulatory blind spots.
