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Frax Finance Proposes $5M Investment in Trump’s WLFI Project

Frax Finance Proposes $5M Investment in Trump’s WLFI Project

CryptotimesCryptotimes2025/01/23 10:44
By:Ronak KumarDhara Chavda

Frax Finance plan to integrate frxUSD into WLFI, leveraging its governance distribution, and partnership network for growth.

Frax Finance has proposed a $5 million investment in World Liberty Financial (WLFI), a DeFi platform tied to Donald Trump’s administration. This move aims to solidify FRAX’s leadership in the expanding U.S.-based DeFi sector. 

A second investment of $10 million is also on the table, depending on the success of the partnership. The election of Donald Trump as the 47th president has spurred interest in U.S.-origin crypto initiatives. 

Frax Finance Proposes $5M Investment in Trump’s WLFI Project image 0 Frax Finance Proposes $5M Investment in Trump’s WLFI Project image 1 Source:   X

While Trump hasn’t officially mentioned Bitcoin or cryptocurrencies since taking office, his administration has backed U.S.-focused blockchain projects. WLFI, aligned with Trump’s pro-crypto agenda, has emerged as a key player, aiming to onboard millions of Americans into DeFi.

Frax Finance plans to integrate its algorithmic stablecoin, frxUSD, into WLFI’s ecosystem. The initial $5 million will secure WLFI tokens, granting FRAX governance influence. If the partnership succeeds, FRAX could invest another $10 million to expand its role in WLFI’s network.

WLFI’s portfolio includes top DeFi tokens like Ethereum, Chainlink, AAVE, and Wrapped Bitcoin, with ETH assets surpassing $184 million. Its governance model allows users to shape the ecosystem, enhancing the adoption of projects like FRAX.

Frax Finance’s U.S. roots and co-founder Stephen Moore’s ties to the Trump administration strengthen its alignment with WLFI’s vision. By integrating frxUSD, FRAX could boost its influence in the DeFi sector while driving U.S.-based crypto adoption.

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