DWF Labs Invests $25M in Trump-Backed World Liberty Financial

DWF Labs, a leading digital asset market maker and Web3 investment firm, has made a strategic $25 million investment in World Liberty Financial (WLFI), a decentralized finance protocol notably backed by members of the Trump family. The investment was announced alongside plans to support WLFI’s forthcoming stablecoin, USD1, which aims to be pegged to the U.S. dollar and backed by short-term Treasury bills and cash equivalents.

The deal involves DWF Labs acquiring WLFI governance tokens, granting them influence in project decision-making and signaling confidence in the protocol’s long-term viability. In return, DWF Labs will provide liquidity for USD1, a stablecoin designed to appeal to institutional investors and sovereign entities seeking transparent and asset-backed digital dollar alternatives. DWF’s participation is expected to enhance USD1’s credibility and reach, particularly as competition in the stablecoin space intensifies with other major entrants such as Circle, Tether, and emerging DeFi-native protocols.

The stablecoin, USD1, is envisioned as a compliant and secure option for on-chain finance, with a backing structure modeled after traditional money market funds. WLFI claims this will offer a stable digital asset that meets the rigorous demands of financial institutions looking to minimize counterparty risk while gaining access to blockchain-based settlement layers.

U.S. Expansion and Regulatory Engagement

As part of its partnership with WLFI, DWF Labs is also expanding its footprint in the United States with a new office opening in New York City. The move is intended to facilitate deeper engagement with traditional financial institutions and U.S. regulators, while also supporting the growth and adoption of WLFI’s decentralized financial services.

According to a company spokesperson, the New York office will serve as a base for forming new partnerships, lobbying for favorable crypto regulations, and hosting events that foster dialogue between DeFi startups and policymakers. This expansion comes amid growing calls for regulatory clarity in the U.S. crypto sector, particularly concerning stablecoins and governance tokens.

Launched in September 2024, WLFI has already raised over $600 million in token sales. Previous investors include Tron founder Justin Sun with a $30 million stake and venture capital firm Web3Port, which invested $10 million. The project has marketed itself as a patriotic DeFi initiative aimed at restoring financial sovereignty through blockchain technology.

The Trump family’s involvement has attracted scrutiny due to reports indicating they control 75% of WLFI’s net token sale revenues, raising questions about the decentralization of the project. Critics argue that such central control contradicts the core ethos of DeFi. However, supporters say the association brings political weight and mass visibility to the project, potentially accelerating adoption.

Despite controversy, the protocol has continued to attract significant capital and high-profile support amid growing institutional interest in stablecoins and DeFi infrastructure. With DWF Labs now backing its token economy and stablecoin efforts, WLFI appears poised to play a more prominent role in shaping the future of regulated, dollar-based digital finance.