World Liberty Financial bets $10M on Falcon Finance’s synthetic Dollar, eyes DeFi dominance

World Liberty Financial has invested $10 million into Falcon Finance’s synthetic dollar protocol, USDf, positioning itself as a dominant player in the next generation of decentralized finance (DeFi) and on-chain digital dollars.

This high-stakes move by World Liberty Financial, a DeFi firm linked to the Trump family, marks a major step in bridging fiat-backed and synthetic stablecoins.

Coming shortly after the launch of WLFI’s own USD1 digital asset, the investment signals its deepening influence across both institutional and retail stablecoin markets.

A strategic alliance to shape the future of stablecoins

At the heart of this development is a strategic partnership between World Liberty Financial and Falcon Finance.

The $10 million injection is aimed at accelerating Falcon’s development of a synthetic dollar ecosystem that includes shared liquidity provisioning, multi-chain compatibility, and seamless conversions between USDf and USD1.

“This investment validates our approach to creating more efficient on-chain dollar instruments for institutional users,” said Andrei Grachev, Managing Partner at Falcon Finance.

“We are excited to collaborate with World Liberty Financial to redefine digital dollar solutions.”

Falcon’s synthetic dollar, USDf, recently surpassed $1 billion in circulating supply—an industry milestone that reflects growing demand for synthetic stablecoin infrastructure in the DeFi space.

USD1 and USDf: The best of both worlds?

While USDf offers dynamic, overcollateralized exposure to stable digital dollars, WLFI’s USD1 brings traditional familiarity to crypto users.

Fully redeemable 1:1 for the US dollar and backed by cash equivalents and U.S. Treasury money market funds, USD1 has now been adopted as collateral within Falcon’s protocol.

“This strategic partnership with Falcon Finance represents a significant step forward in our mission to build a comprehensive DeFi ecosystem,” said Zak Folkman, co-founder of World Liberty Financial.

By aligning with Falcon’s synthetic framework, World Liberty Financial is pioneering a hybrid model that blends the reliability of fiat-backed assets with the flexibility of synthetic dollars.

World Liberty Financial vision: Global reach and stablecoins leadership

According to WLFI insiders, the investment goes beyond tech development. The firm intends to leverage its growing distribution and media network to amplify the reach of Falcon Finance globally.

That includes onboarding exchanges, wallets, and institutional gateways where the USDf-USD1 pairing can flourish.

Such ambition reflects a broader power play in the evolving stablecoin landscape. As nations like Hong Kong push real-name frameworks and Western regulators tighten controls, WLFI and Falcon are proactively embracing compliance.

“We are actively engaging with licensing pathways in the United States, Europe, and Asia,” Grachev confirmed. “That includes real-name frameworks, disclosure rules, and asset segregation requirements.”

Falcon Financial’s transparent approach to synthetic dollars

Transparency remains a cornerstone of Falcon’s model. Each USDf is overcollateralized and backed by verifiable, auditable assets. In an exclusive to BeInCrypto, Grachev explained:

“Our approach has always been to prioritize transparency, overcollateralization, and real utility. Every USDf in circulation is backed by auditable collateral, with clear reserve ratios and system metrics available on-chain.”

This emphasis on clarity and trust directly aligns with World Liberty Financial’s vision of building a long-term, regulatory-compliant DeFi ecosystem that appeals to institutions and everyday users alike.

The future is hybrid: Fiat-backed meets synthetic

The inclusion of USD1 as collateral for USDf highlights a potential paradigm shift in the design of digital dollars.

While fiat-backed coins offer instant redemption and user confidence, synthetic models provide programmability, yield generation, and multi-asset support.

“Fiat-backed and synthetic dollars serve different roles,” Grachev said. “Our view is that the future of digital dollars will not be defined by a single design, but by how different formats interoperate—safely and at scale.”

With World Liberty Financial at the helm of this hybrid evolution, the stakes—and the promise—have never been higher.