DWF Labs Invests $25 Million in Trump-Backed WLFI

DWF Labs has announced a $25 million strategic purchase of World Liberty Financial (WLFI) governance tokens, the Web3 investment firm and cryptocurrency market maker announced on Wednesday.

World Liberty Financial is a decentralized finance (DeFi) protocol and governance platform that "draws inspiration from the vision of Donald Trump." Its forthcoming flagship product is USD1, a stablecoin intended to be redeemable 1:1 for the U.S. Dollar and backed by traditional, low-risk assets.

DWF Labs' substantial investment in WLFI tokens underscores its intent to participate in the project's governance. These governance tokens, while not currently tradeable, grant holders the right to vote on potential changes to the underlying code of the World Liberty Financial platform.

"Our physical presence reflects our confidence in America’s role as the next growth region for institutional crypto adoption. Moreover, the USD1 stablecoin and forthcoming global DeFi solutions align with our broader mission to improve financial services," Andrei Grachev, managing partner of DWF Labs, said in a statement.

This move also positions DWF Labs as a key partner in the World Liberty Financial ecosystem. As part of the collaboration, DWF Labs will act as a liquidity provider for the USD1 stablecoin, leveraging its extensive network and algorithmic trading infrastructure across both centralized and decentralized exchanges. DWF Labs stated it will not charge fees for its market-making services for USD1.

Zak Folkman, co-founder at World Liberty Financial, welcomed the partnership. "As our partner, we expect DWF Labs to help accelerate the next-generation infrastructure we’re actively building and deploying at WLFI."

The establishment of a US office in New York City signifies a strategic expansion for DWF Labs. The firm aims to strengthen partnerships with traditional financial institutions exploring blockchain technology, hire local talent, enhance regulatory engagement with US policymakers, and support the growth of promising projects like USD1.

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