Partnership Background and Core Content
On March 6, 2025, the DeFi platform World Liberty Financial (WLF), supported by the Trump family, reached a strategic cooperation agreement with Layer1 blockchain SUI to launch a “Strategic SUI Reserve Program.” Under the agreement, WLF will allocate SUI tokens worth USD 75 million (accounting for 15% of its total reserves) to support SUI ecosystem liquidity mining, cross-chain payment gateways, and governance voting. This collaboration is viewed as the first tangible implementation of the Trump administration’s “national-level crypto strategic reserve” policy – announced on March 5, 2025, when Trump declared the establishment of a national crypto asset reserve, with further details to be revealed at the White House Crypto Summit.
Founded in September 2024 by the Trump family, WLF positions itself as a revolutionary platform challenging the traditional financial system. Its reserve plan has already accumulated over USD 500 million in investments covering tokens like AAVE and Wrapped TRX; the inclusion of SUI marks its first venture into Layer1 blockchains. According to JuCoin data, following the announcement, SUI’s price increased by 12% within 24 hours, with its market cap surpassing USD 3 billion, placing it among the top ten Layer1 blockchains.
Technical Foundation and Liquidity Mechanism
SUI, a high-performance Layer1 blockchain using the Move language, offers parallel processing (with a theoretical TPS of up to 100,000) and low gas fee structure (with each transaction costing less than USD 0.01), making it the preferred partner for WLF. The core of the cooperation is to build a cross-chain payment gateway that tokenizes traditional financial assets (such as real estate and government bonds) and injects them onto the SUI chain via compliant channels. For instance, users can use smart contracts on SUI to directly exchange USD stablecoins for tokenized gold held in the WLF reserves, with transaction confirmation in only 2 seconds and fees at one-tenth those of traditional brokers.
WLF’s reserve tokens will be used for staking mining, providing base liquidity for SUI ecosystem DeFi protocols, with an expected annual yield of 8%-15%. Moreover, SUI holders can participate in DAO governance votes within the WLF ecosystem to decide on reserve token allocation and revenue distribution. This model is designed to attract traditional financial institutions (such as pension and insurance funds) and expand the DeFi market.
Market Impact and Policy Drivers
The backing by the Trump administration lends significant support to the cooperation. As a platform associated with the Trump family, WLF has received its image authorization and will allocate 75% of its net revenue to the Trump family. Should the national crypto reserve policy come into effect, SUI could become one of the first strategic assets included, further solidifying its market position. Currently, states such as Texas and Florida—led by Republicans—are advancing similar legislation (e.g., Texas Bitcoin Reserve Bill SB21), forming a “federal-state” coordinated crypto asset reserve system.
SUI’s developer ecosystem will also benefit directly. WLF has committed to providing liquidity incentives for projects migrating to the SUI chain; to date, 12 DeFi protocols, including the decentralized exchange Cetus and the lending protocol Navis, have joined the platform. SUI’s on-chain TVL grew by 25% within one week, surpassing USD 800 million, reflecting market optimism about the cooperation’s prospects.
Potential Risks and Challenges
Despite the promising outlook, several risks remain:
- Regulatory and Compliance Pressure: The SEC is already investigating the Trump family’s ties with WLF. If WLF’s tokens are deemed unregistered securities, SUI could face the risk of being delisted as well.
- Concentrated Token Sell Pressure: Only 20% of the total SUI supply is in circulation, with a large portion held by the foundation and early investors. If WLF decides to sell its reserve tokens, it could trigger severe price volatility.
- Technical Execution Capability: The WLF platform has not yet officially launched, and its promised “DeFi lending” and “cross-chain payment” functionalities are still in testing. Although SUI is technologically advanced, it must contend with competition from high-performance chains like Solana and Aptos. Failure by WLF to deliver on its liquidity promises could hinder SUI’s ecosystem growth.
Future Outlook and Key Milestones
The year 2025 will serve as a critical validation period for the partnership. If SUI is successfully integrated, it will significantly boost market confidence. WLF plans to launch its mainnet in Q2 and introduce a co-branded payment card to bridge offline consumption; by Q4, the goal is to achieve an on-chain TVL on SUI of over USD 5 billion and attract 50 institutional investors.
For investors, it is essential to closely monitor WLF’s technical implementation progress and regulatory developments. A successful strategic reserve that integrates traditional financial assets could reshape the capital structure of the DeFi market, but its success will depend on the strength of policy support and ecosystem execution efficiency.
Neason Oliver
