Trump-linked WLFI invests $10M in Falcon Finance for stablecoin development
A blockchain platform affiliated with US President Donald Trump has invested $10 million in Falcon Finance to bolster stablecoin infrastructure. This investment aims to enhance liquidity and interoperability between two stablecoins: Falcon USD (USDf) and USD1, the latter linked to Trump's son Eric. Falcon Finance is set to leverage this funding to establish shared liquidity and cross-chain compatibility for both tokens. The USD1 token will also serve as collateral on Falcon Finance. As part of their efforts, the partnership seeks to develop a more robust digital dollar infrastructure usable by retail and institutional participants. Recent price fluctuations show that both USDf and USD1 have struggled with maintaining their $1 pegs, raising concerns over collateral quality. Despite this, the Trump-family-linked stablecoins are increasingly being utilized in the crypto market, although there are concerns regarding potential impacts on emerging US blockchain legislation. Several assembled Democratic representatives in Congress are expressing opposition to Republican-backed crypto-related bills, stating these could complicate legislation and consumer protection.
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