World Liberty Financial (WLFI), backed by former President Donald Trump, has invested $10 million in Falcon Finance to enhance liquidity and interoperability for the USD1 stablecoin ecosystem. The funding aims to strengthen multichain compatibility and improve conversion mechanisms between USD1 and Falcon USD (USDf) stablecoins.
This move occurs as both USD1 and USDf recently exhibited volatility, with USD1 trading at $0.9993 following a brief depegging event from its $1 target. Market observers note ongoing price instability concerns despite partial recovery.
Regulatory scrutiny has intensified due to the Trump family’s expanding cryptocurrency ventures, prompting concerns over potential conflicts of interest in U.S. blockchain legislation. Democratic lawmakers oppose Republican-proposed crypto bills, citing insufficient consumer protections and fears of compromised regulatory integrity.
Trump-affiliated crypto projects have reportedly contributed over $620 million to the former president’s net worth, escalating political tensions in crypto policy debates. Critics warn this financial entanglement could further polarize legislative efforts to establish balanced digital asset regulations.