World Liberty Financial Could Receive $10M Investment From Frax With Aim To Expand DeFi

Key Points:

• Frax Finance has proposed a $5 million investment in World Liberty Financial, with the potential to increase to $10 million based on the partnership's success.
• World Liberty Financial aims to bring millions of Americans into DeFi with over $70 million already invested in major DeFi initiatives.

On January 23, decentralized stablecoin protocol Frax Finance proposed a $5 million investment in World Liberty Financial, a cryptocurrency project with links to the Trump family.

Read more: World Liberty Financial Boosts Reserves with TRX Acquisition   

Frax Finance Proposes $5 Million Investment in World Liberty Financial

World Liberty Financial is hoping to bring millions of Americans into the fold of DeFi and be supportive of key U.S.-based projects in crypto. A first tranche investment of $5 million would buy Frax's WLFI tokens, entitling it to a portion of voting rights. An additional amount of up to $10 million would follow up provided initial milestone achievements are met.

So far, World Liberty Financial has invested more than $70 million in DeFi-a, a substantial amount of that investment directed toward United States-based projects, including Aave, Chainlink, and Ethena. To Stephen Moore, the co-founder at Frax and former economic adviser to Donald Trump, the partnership offers a way to double down on Frax's leading stablecoin position.

World Liberty Financial Aims to Expand DeFi Access for Americans

The push for U.S.-origin crypto projects has been swelling since the election of Trump as the 47th President of the United States. Interest from the current administration for blockchain and cryptocurrency innovation has given projects like World Liberty a boost, which meets his vision for a crypto-run economy in the United States.

Frax Finance intends to integrate the frxUSD stablecoin with the World Liberty system, citing the project's governance, distribution network, and partnerships that will help drive its presence deeper into the DeFi space.