Frax Finance Invests $5 Million in Trump-Backed Project

Frax Finance has just proposed a $5 million investment in World Liberty Financial (WLFI), a DeFi project closely tied to the Donald Trump administration. The move aims to help Frax Finance become one of the leading names in the decentralized finance (DeFi) ecosystem in the US. In addition, an additional investment of up to $10 million is also being considered, depending on the results of the initial partnership.

The increased attention on US-origin crypto projects comes from the event of Donald Trump becoming the 47th President of the United States. The current administration has shown a strong interest in blockchain and cryptocurrency development. Against this backdrop, World Liberty Financial has emerged as a key DeFi platform that fits Trump’s US-centric crypto-economic strategy.

Frax Finance, which features the algorithmic stablecoin frxUSD, plans to integrate it into WLFI’s system. The investment proposal highlights how Frax Finance can leverage WLFI’s governance structure, distribution network, and partnerships.

WLFI aims to bring millions of Americans into the DeFi space while supporting US-based crypto projects. The initial investment of $5 million will enable Frax Finance to purchase WLFI tokens, thereby becoming a shareholder in the platform’s governance framework. If the initial goals are met, a second investment phase of up to $10 million will be launched.