In a bold move, World Liberty Financial (WLFI), a decentralised finance (DeFi) project backed by U.S. President Donald Trump and his family, has secured a $25 million investment from crypto giant DWF Labs.
The deal, finalised through a private token purchase, coincides with DWF’s aggressive U.S. expansion, including a new New York City office aimed at deepening ties with regulators and traditional banks.
DWF Labs Bets Big on Trump-Backed DeFi Project
On April 16, Dubai-based DWF Labs announced its $25 million investment in WLFI, acquiring governance tokens that grant voting power over the project’s future. The move signals confidence in WLFI’s mission to revolutionise digital finance. Launched in September 2024, WLFI promotes dollar-pegged stablecoins and DeFi solutions, with Trump declaring during its debut, “We’re embracing crypto’s future and leaving sluggish banks behind.”
Meanwhile, DWF’s stake aligns with its strategy to influence emerging financial ecosystems. “This partnership accelerates our next-gen infrastructure,” said WLFI co-founder Zak Folkman. The investment follows WLFI’s staggering $600 million fundraising streak since its launch.
Stablecoin USD1 Gains Liquidity Lifeline
Central to the collaboration is USD1, WLFI’s stablecoin pegged to short-term U.S. Treasury bills and cash reserves. Though not yet tradable, USD1 debuted on Ethereum and BNB Chain in March. DWF Labs will now supply liquidity, leveraging its global trading infrastructure to stabilise the asset across exchanges.
Furthermore, the firm aims to position USD1 as an “institutional-grade” option for sovereign investors, a timely push as regulators scrutinise stablecoins. “USD1 meets rising demand for reliability,” a WLFI spokesperson noted. The stablecoin’s success could hinge on DWF’s market-making prowess, which supports over 60 exchanges worldwide.
New York Office U.S. Expansion Ambitions
DWF Labs Manhattan office shows its U.S. ambitions. The market maker plans to hire locally, forge partnerships with banks and fintech firms, and engage regulators. “America is crypto’s next growth frontier,” said DWF Managing Partner Andrei Grachev. The expansion follows rising institutional crypto adoption, with firms like BlackRock entering the space.
Additionally, the office could ease regulatory hurdles. By working closely with agencies like the SEC, DWF hopes to shape compliant frameworks for its operations, a critical step as lawmakers debate digital asset laws.
WLFI’s $600M Investments Attracts High-Profile Backers
WLFI’s rapid ascent includes $550 million from public token sales, split between two rounds. The first sold 20 billion tokens, netting $300 million, while a March sale added $250 million. Notably, Tron founder Justin Sun invested $30 million in November, followed by Web3Port’s $10 million commitment. Venture firm Oddiyana Ventures also joined, though undisclosed sums.
These injections highlight growing institutional interest in politically linked crypto projects. WLFI’s Trump connection, a first for a major DeFi initiative, adds intrigue, merging the president’s populist brand with cutting-edge finance.
Bridging Crypto and Traditional Finance
The partnership aims to bridge decentralised and traditional finance. WLFI’s focus on USD1 mirrors trends like BlackRock’s tokenised fund, reflecting demand for blockchain-based Treasury products. DWF’s liquidity support could help USD1 rival giants like Tether and USDC, especially if regulatory clarity improves.
“Our U.S. presence strengthens institutional trust,” Grachev emphasised. For WLFI, DWF’s expertise offers credibility amid fierce stablecoin competition. The project’s Treasury-backed model may appeal to risk-averse investors, potentially reshaping how institutions interact with DeFi.
Navigating Risks in a Volatile Market
Despite momentum, challenges loom. Stablecoins face regulatory uncertainty, while Trump’s polarising reputation could deter some investors. Moreover, WLFI must prove USD1’s stability, a hurdle given its untested status.
However, DWF’s involvement mitigates risks. As a top market maker, it ensures trading fluidity, reducing volatility fears. Collaborative governance could also foster transparency, addressing critiques of centralised DeFi projects.
In conclusion, this $25 million bet merges political clout with crypto innovation, testing whether Trump’s brand can disrupt finance. As DWF Labs plants its flag in New York, the world watches: Will USD1 shake up stablecoins or become a footnote in crypto’s turbulent saga? Only time and regulators will tell.
