UAE Fund Buys $100M Worth of Trump-Linked Crypto Token
Date: October 12, 2023
A UAE-based cryptocurrency fund, the Aqua 1 Foundation, has acquired a substantial position in World Liberty Financial (WLFI) tokens, spending a reported $100 million, according to recent disclosure filings.
The token ($WLFI) is the native governance token of the World Liberty Financial (WLF) project—a decentralized finance (DeFi) platform built on the Ethereum blockchain. The project has received backing from Donald Trump.
The Aqua 1 Foundation stated its motivation for the investment: “to help accelerate the creation of a blockchain-powered financial ecosystem.”
A joint statement outlined further objectives: “Together, WLFI and Aqua 1 are building the definitive bridge between legacy systems and blockchain innovation—an institutional-grade marketplace delivering unparalleled access to traditional assets.”
In seeking to merge traditional finance and DeFi, Aqua 1 noted specific details about the USD1 stablecoin associated with the WLF project. This stablecoin played a role in facilitating a reported $2 billion investment by Abu Dhabi’s sovereign wealth fund, MGX, into Binance—an application noted for drawing scrutiny.
The Aqua 1 purchase positions it as a significant token holder potentially influencing the $WLFI token’s valuation and importance in the WLF ecosystem. Ownership of the $WLFI token allows holders voting rights for governance decisions.
Investment in the $WLFI token and the use of the $USD1 stablecoin have drawn considerable scrutiny from lawmakers. Questions surrounding potential conflicts of interest have been prominent due to existing and recent dealings by Presidents Trump and his family with WLF.
Recent regulatory attention was highlighted by an investigation started by Sen. Richard Blumenthal (D-CT) into the WLF project and its ties to the holding company DT Marks DEFI LLC, which reportedly reduced its ownership share in WLF this month from 60% to around 40%.
Furthermore, transparency and regulatory concerns were heightened by President Trump’s own disclosure of receiving a $57.3 million gain from the original World Liberty Financial token sale back in May.
While details of the WLF DeFi platform’s specific functions are limited, its promoters claim it aims to provide borrowing and lending services similar to traditional banking but built on blockchain. Advocates believe blockchain solutions can offer faster, more efficient, and decentralized financial services.
The WLF project was first publicly suggested by President Trump’s son, Eric, this year. The effort involves entrepreneurs Chase Herro and Zak Folkman alongside prominent families connected to the President.
While White House finances often receive attention, details on the Trump administration’s formal investments in ventures via the White House Special Envoy to the Middle East, Steve Witkoff, are intentionally limited.
This significant investment underscores the evolving nature of the crypto market, its potential integration with traditional finance, and simultaneously highlights the ongoing scrutiny faced by projects linked to prominent political figures.
