According to Kriptofoni's news, ALT5 Sigma, traded on Nasdaq, secured $1.5 billion in funding from an investor group led by World Liberty Financial (WLFI). This development is seen as a significant step in the cryptocurrency world. Under the agreement, Eric Trump was included in the board of directors of ALT5 Sigma, and Zach Witkoff was appointed as the Chairman of the Board.
This step indicates an increasing interest from traditional finance and political circles in the crypto space. Eric Trump's strategic vision and political connections are expected to contribute to ALT5 Sigma's global expansion strategies.
A significant portion of the raised funds will be directed towards a strategy that involves acquiring approximately 7.5% of the WLFI token supply into the ALT5 treasury for direct participation in the WLFI stablecoin ecosystem. This way, the company is actively participating as an investor in the stablecoin ecosystem.
Fund management will be undertaken by Kraken to enhance security and transparency in the sector.
As a result, three significant impacts of this development stand out:
The growing interest of mainstream investors in crypto is likely with the inclusion of prominent figures like Eric Trump in the sector.
The entry of institutional funds could create new balances in the stablecoin competition — it could compete with major players like USD1, Tether (USDT), and USDC.
The emphasis on trust and transparency could reduce risks at the institutional level and positively contribute to the market.