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Stablecoin project Falcon Finance, which attracted attention with its circulating supply exceeding $1 billion following its public launch, announced that it received a $10 million strategic investment from World Liberty Financial (WLFI).
WLFI Invests $10 Million in Falcon Finance: Increasing On-Chain Dollar Liquidity
WLFI operates as a decentralized finance (DeFi) platform and is known for its alleged links to the family of US President Donald Trump.
According to a statement from the company, this investment will be used to support technical integrations that will provide liquidity between Falcon’s synthetic dollar, USDf, and WLFI’s fiat-backed stablecoin, USD1.
There are significant differences between Falcon's risk-adjusted synthetic dollar protocol and WLFI's USD1 stablecoin, which is 100% backed by cash and money market funds and is redeemable one-to-one with the US dollar. This difference allows both projects to offer complementary return opportunities to investors through on-chain dollar instruments.
According to the statement, USD1 has already been used as collateral within the Falcon protocol. “By combining Falcon’s model with our fiat-backed design, we are building a more resilient and flexible digital dollar ecosystem for global users,” said WLFI co-founder Zak Folkman.
*This is not investment advice.