WLFI Seeks $1.5B for Token Treasury

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Good Morning.

The big stories this week are Trump’s push to allow crypto in 401(k) plans and WLFI’s bid to raise $1.5B for a token treasury, both could fuel demand, but they’re sure to stir political and regulatory debates.

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In Today's Email:

• What Matters: WLFI Seeks $1.5B for Token Treasury 👀 

• Product of the Week: Coinbase Rolls Out DEX Trading in the US 🇺🇲 

• Charts: BTC & ETH Surge, LayerZero $110M Stargate Acquisition 📊 

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WHAT MATTERS

WLFI Seeks $1.5B for Token Treasury

State of play: World Liberty Financial, a DeFi project backed by the Trump family, is aiming to raise $1.5B to establish a publicly traded treasury company that will hold its WLFI tokens, according to Bloomberg and Fortune.

• The deal’s structure is still being finalized, but Eric Trump and Donald Trump Jr. are expected to join the board.

• This move follows a July vote by WLFI holders to allow trading of tokens sold to early backers.

• The release schedule for the rest of the 100B supply will be determined in a later vote.

• The project also offers the USD1 stablecoin and plans to reward its users with points.

• WLFI has built a diversified crypto treasury, including about $55M in ETH, $19M in wrapped BTC, $14M in Tron, and additional holdings in other tokens.

• President Trump’s role as “co-founder emeritus” has sparked conflict-of-interest concerns among critics.

Why it matters: A $1.5B raise would make WLFI one of the largest token-backed treasuries, blending political branding with DeFi. Its diversified holdings and Trump family involvement could boost attention but invite heavy scrutiny.

Our take: The treasury structure and stablecoin ecosystem add legitimacy, though regulatory risk is high given the political ties.

For builders and investors: High-profile branding can drive adoption but increases oversight.

• Watch the token unlock schedule and governance votes, as they will shape early market behavior.

PRODUCT OF THE WEEK

Coinbase Rolls Out DEX Trading in the US

Coinbase has launched a decentralized exchange integration for US users, excluding New York, via its Ethereum Layer 2 network Base.

• The feature allows trading of millions of digital assets, far beyond the 300 previously available, with instant access to new tokens.

• Users can trade on DEXes like Aerodrome and Uniswap directly within the Coinbase app, with plans to expand to other networks such as Solana.

• The move follows declining spot trading volumes and aims to position Coinbase as an “everything exchange” offering broader asset access.

Other cool products:

• Adamant, a yield optimizer vault.

• Extended, a perp DEX built by an ex-Revolut team.

• Lynx, a decentralized perpetuals exchange on Linea.

• Nova, a multichain launchpad and GameFi ecosystem.

Take a peek at our referral reward at the bottom of this issue. Share this newsletter and receive our list of 500 crypto VC individuals 👇

CHARTS OF THE WEEK

Bitcoin Nears $122K, Ether Hits $4.3K on Trump 401(k) Move

State of play: Bitcoin climbed to nearly $122,000 and Ether hit $4,300, its highest since December 2021, after President Trump signed an executive order directing regulators to allow crypto in 401(k) retirement plans.

• Analysts say the move could spur significant buying demand from millions of retirement accounts.

• Additional momentum comes from strong ETF inflows, $253M into BTC ETFs and $461M into ether ETFs this week and corporate crypto treasuries.

• With CPI and PPI data due this week, macro conditions could influence whether prices push toward new highs.

Our take: Trump’s 401(k) crypto push adds a powerful narrative to an already bullish market. While it could accelerate demand, upcoming inflation data and Fed signals will determine if this rally sustains or cools.

LayerZero Proposes $110M Stargate Acquisition

State of play: The LayerZero Foundation has proposed a $110M acquisition of the Stargate bridge and its STG tokens, aiming to integrate the protocol fully into its ecosystem.

• If approved by a 70% DAO vote, the STG token would be discontinued, with holders swapping to LayerZero’s ZRO token.

• The deal would dissolve the Stargate DAO and bring the bridge under LayerZero’s control, accelerating development beyond bridging.

• Both STG and ZRO prices rose after the announcement, lifting the deal’s value to about $127M.

Our take: LayerZero’s plan could strengthen its ecosystem, but the swap terms may spark resistance from STG holders.

QUICK BITES

• CEA Industries buys $160M in BNB.

• Bitcoin nears $122,000, Ether hits 2021 high.

• Ethereum ICO participant sells 2,300 ETH worth $9.9M.

• El Salvador passes law letting investment banks hold BTC.

• World Liberty Financial seeking $1.5B for WLFI treasury company.

• LayerZero Foundation proposes $110M acquisition of Stargate bridge.

• Harvard had more money in BlackRock's Bitcoin ETF than Google shares.

• BTC trails Gold in 2025 but dominates long-term returns across major asset.

NOTEWORTHY READS & MEME

• John Wang’s read on The Human Premium.

• Frax’s read on FraxNet: The Fat Stablecoin Thesis.

• Mary’s read on Hyperliquid: The Economics of Trust.

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Disclaimer: All the information presented in this publication and its affiliates is strictly for educational purposes only. It should not be construed or taken as financial, legal, investment, or any other form of advice.