TLDR
- Falcon & WLFI Partner to Bridge Synthetic and Fiat Stablecoins in DeFi
- USDf Gains $10M Boost to Expand Liquidity With WLFI’s USD1 Backing
- Falcon Taps WLFI’s Fiat Network to Scale Synthetic Stablecoin USDf
- WLFI’s USD1 Enters Synthetic Market Through Falcon Finance Integration
- DWF Labs Backs DeFi Growth With Falcon–WLFI Stablecoin Collaboration
Falcon Finance secured an initial investment of $10 million from World Liberty Financial (WLFI), a DeFi platform linked to the Trump family. The capital aims to expand liquidity and integrations between Falcon’s synthetic stablecoin USDf and WLFI’s fiat-backed USD1. This partnership marks a significant move to bridge synthetic and fully collateralized stablecoins across platforms.
USDf to Gain Liquidity Through WLFI Integration
Falcon Finance will utilize the funds to develop shared liquidity systems and enable seamless on-chain conversions between USDf and USD1. The project runs a synthetic dollar model using a dynamic overcollateralization structure supported by diverse crypto and tokenized assets. USDf recently crossed $1.175 billion in market cap, signaling a growing demand for alternative digital dollar instruments.
Falcon Finance raised $10M strategic investment from @worldlibertyfi, the team behind the world’s fastest growing fiat-backed stablecoin, USD1.
USD1 is already accepted as collateral on Falcon. Together, we’re building a new onchain dollar standard.
Full story:… pic.twitter.com/bj2UPGQO1J
— Falcon Finance (@FalconStable) July 30, 2025
The new collaboration allows Falcon to access WLFI’s fiat-backed collateral and broad user network for deeper integrations and scaling. WLFI’s USD1 is already being used within Falcon’s protocol, strengthening the collateral base behind the synthetic coin. This move is set to improve USDf’s accessibility across decentralized networks.
Falcon Finance operates under the DWF Labs umbrella and launched USDf in February 2025 to create an adaptable and risk-managed dollar asset. The firm leverages yield-generating assets to back on-chain dollar issuance, aiming to serve institutional and cross-platform demands. The fresh funding will also support Falcon’s expansion into multi-chain environments and broader DeFi use cases.
USD1 Strengthens Presence Through Falcon’s Synthetic Model
WLFI’s USD1 stablecoin, backed 1:1 with U.S. dollars, holds reserves in dollar deposits, money market funds, and cash equivalents. With a market cap of $2.19 billion, USD1 targets users seeking secure and liquid dollar representations across blockchains. The partnership with Falcon allows USD1 to enter synthetic asset markets via integrated smart contracts.
This collaboration combines Falcon’s flexible collateral framework with USD1’s redeemability and transparency to build dual-sided digital dollar rails. It also offers on-chain mechanisms for secure and efficient switching between synthetic and fiat-backed assets. USD1’s inclusion as accepted collateral in Falcon enhances capital efficiency without compromising on reserve integrity.
WLFI continues expanding its influence through targeted ecosystem investments and product integrations with partner protocols. In April 2025, DWF Labs acquired $25 million of WLFI’s governance token, further aligning the two entities. With Falcon now using USD1 within its protocol, WLFI strengthens its presence in hybrid stablecoin infrastructures.
DWF Labs Continues DeFi Expansion via Falcon and WLFI
DWF Labs co-founder Andrei Grachev also leads Falcon Finance and helped structure its capital and infrastructure model. Known for market-making and incubation strategies, DWF Labs supports protocols operating across Asia and the Middle East. The firm continues to deploy capital into projects combining liquidity tools and yield products.
Falcon Finance reflects DWF Labs’ broader plan to build decentralized infrastructure for collateralized on-chain liquidity. The platform allows institutions and protocols to use assets like fiat-backed tokens and real-world assets as liquidity sources. The strategic investment from WLFI aligns with this mission by linking fiat and synthetic finance through stablecoin channels.
Falcon aims to position itself as a core layer for digital asset liquidity while connecting multiple networks and custody frameworks. The WLFI funding provides a launchpad for expanding stablecoin usage, particularly among institutions seeking flexible dollar assets. Together, Falcon and WLFI aim to deliver scalable, interconnected solutions for next-generation digital dollars.
