Trump-backed DeFi Platform, WLFI

Last updated on February 7th, 2025 at 03:28 pm

World Liberty Financial (WLFI), a DeFi platform backed by President-elect Donald Trump and his sons—Eric, Donald Jr., and Barron—has addressed rumours regarding its recent crypto transactions.

In a January 15 statement on X, WLFI confirmed that the transactions were routine treasury management activities, not token sales. The platform explained that the asset reallocations were necessary to cover operational costs and fees and ensure smooth functionality.

We’re making routine movements of our crypto holdings as part of regular treasury management, and payment of fees and expenses and to address working capital requirements. To be clear, we are not selling tokens—we are simply reallocating assets for ordinary business purposes.…
— WLFI (@worldlibertyfi) January 14, 2025

According to WLFI’s official website, 5.36 billion of its 20 billion tokens have been sold, leaving 14.645 billion available for purchase. Investors can acquire WLFI tokens using Ethereum (ETH), USDC, Tether (USDT), or Wrapped Ether (WETH), with allocations based on the investment amount.

Speculation around WLFI intensified after blockchain analytics firm Arkham Intelligence identified wallet activity linked to the platform. This included $10 million in swaps of Wrapped Bitcoin (WBTC) for Ethereum (ETH) and Tether (USDT) via the CoW protocol. The transactions spurred more discussions online, which were already at a high pitch, primarily because of the President-elect’s crypto leanings, with some humorously urging Trump to “pump ETH bags.”

Notably, cryptocurrency analyst James Van Straten dismissed other rumours that Trump might declare Bitcoin a strategic reserve asset via executive order upon taking office. Van Straten suggested Trump would likely pursue quiet accumulation to avoid driving up Bitcoin prices, with a more plausible move being restrictions on selling government-seized Bitcoin.

Meanwhile, in addition to treasury management, WLFI is evaluating a proposal from Ethena Labs to integrate its staked synthetic dollar (sUSDe) into WLFI’s Aave-powered platform. sUSDe, a stablecoin pegged to the U.S. dollar and backed by leveraged Bitcoin and staked Ethereum positions, would provide users with liquidity, expanded collateral options, and yield opportunities. The integration could also offer sUSDe rewards, encouraging broader adoption and participation in WLFI’s ecosystem.

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