DWF Labs buys $25M of Trump’s WLFI tokens in US market expansion drive

Source Cryptopolitan

DWF Labs, one of the major Web3 investment funds, will acquire a strategic stake of WLFI tokens valued at $25M. The purchase is part of the fund’s expansion plan into the US market. 

DWF Labs acquired a strategic stake in World Liberty Fi, by acquiring WLFI tokens valued at $25M. The fund has not mentioned an acquisition price or the size of the on-chain portfolio. However, the known addresses of the DWF Labs market maker are not yet among the top holders of WLFI.

This makes DWF Labs one of the biggest institutional investors after TRON DAO. The fund also announced plans to consolidate its involvement with the US crypto market, by opening an office in New York. 

DWF Labs is a tier 2 fund with a total of 92 investments. The VC fund mostly focuses on rounds of $3M to $10M, targeting the crypto market in Singapore.

DWF Labs
DWF Labs focused on several hot Web3 narratives, but will now branch out to institutional-grade DeFi. | Source: Cryptorank

Until now, DWF Labs focused on some of the most mainstream crypto narratives, including AI, infrastructure, general Web3 projects, as well as NFT marketplaces and metaverses. Some of those narratives are lagging, and the fund is -22% on its investments. 

DWF Labs turns to institutional-grade DeFi

The interaction with WLFI is part of DWF Labs’ strategy for participating in institutional-grade DeFi projects. World Liberty Fi distributes WLFI tokens as a governance tool, ensuring all large-scale investors will hold the tokens. 

The recent WLFI purchase arrives about a month after the Trump family fund completed its public sale. So far, the token’s utility is limited, and there are no clear deadlines for launching a lending pool for passive income. 

DWF Labs also operates as one of the top market makers, with a focus on the Ethereum and stablecoin markets. The market maker will also try to expand its connections with US banks to tap mainstream liquidity. 

In its role as a market maker, DWF Labs will be one of the key liquidity managers for USD1, the stablecoin issued by World Liberty Fi. The market maker will provide deep liquidity for USD1, using its existing network across centralized and decentralized markets. 

The U.S. is the world’s largest single market for digital asset innovation,” said Andrei Grachev, Managing Partner of DWF Labs.

Our physical presence reflects our confidence in America’s role as the next growth region for institutional crypto adoption. Moreover, the USD1 stablecoin and forthcoming global DeFi solutions align with our broader mission to improve financial services,” he said.

As part of its expansion to the USA, the fund will hire local talent, also offering educational content through academic partnerships. 

DWF Labs itself holds around $7.7M in various coins and tokens, with a skew toward ETH and stablecoins. The market maker predominantly uses Binance and BitGo as major counterparties for its operations. 

World Liberty Fi is also starting preliminary tests of offering DeFi operations. In the past week, the fund made a minting test for 1 USDC, signaling the fund may be able to boost liquidity in one of the most widely accepted regulated stablecoins. 

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