WLFI Investment Shows UAE Stake in Emerging DeFi Platform
WLFI investment reduces Trump family ownership to 38% while giving Abu Dhabi royal two board seats in the DeFi platform.
Quick Take
Summary is AI generated, newsroom reviewed.
Abu Dhabi royal Sheikh Tahnoon acquired 49% of World Liberty Financial (WLFI) for $500 million.
The Trump family’s ownership was diluted from 75% to 38%, and Tahnoon gained two board seats.
The deal raises potential U.S. constitutional concerns under the emoluments clause.
WLFI connects to broader UAE crypto investments, including a reported $2 billion stake in Binance.
Sheikh Tahnoon bin Zayed Al Nahyan, an Abu Dhabi royal, bought 49% of World Liberty Financial (WLFI), a DeFi platform backed by President Donald Trump. The Wall Street Journal reports that the deal is worth $500 million.
The Abu Dhabi investment firm paid the first $250 million installment. Of that, $187 million went directly to Trump-linked entities.
WLFI Deal Details and Board Changes
The agreement was signed on January 16, 2025, just days before Trump’s inauguration. Tahnoon secured two board seats as part of the deal. At the same time, the Trump family’s ownership dropped from 75% to 38%.
Tahnoon also aims to gain access to U.S. AI technology through this investment. Analysts note that the deal makes the U.S.-UAE ties stronger in AI and crypto.
Potential Constitutional Concerns
Legal experts raised concerns about the emoluments clause. This rule prevents foreign influence on a president’s family business. Although Trump was no longer in office when the deal closed, the timing and size of the investment drew attention.
The deal also highlights how international investments interact with emerging financial technologies like DeFi. Investors, regulators and policymakers now face new challenges in monitoring cross-border ownership.
Broader Implications for DeFi and Crypto
WLFI launched in 2024 and quickly attracted high-profile investors. The platform also connects to larger UAE crypto investments. For example, the UAE reportedly invested $2 billion in Binance using WLFI’s stablecoin.
Analysts believe Tahnoon’s investment could increase WLFI’s growth. At the same time, it may increase scrutiny from U.S. regulators. The deal demonstrates how private equity, government-linked investors, and emerging technologies intersect globally.
What Comes Next for WLFI
The Abu Dhabi–WLFI investment deal shows the growing international interest in U.S.-linked DeFi platforms. Observers will closely watch U.S. authorities’ response to large foreign stakes in sensitive financial projects.
The outcome may set precedents for future cross-border investments in crypto and AI. Overall, the deal highlights both opportunities and risks when wealthy investors and governments invest in emerging digital finance.
References
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