Key Points
- Donald Trump’s media firm has launched Truth.Fi to venture into financial services and cryptocurrency investments.
- The company plans to allocate up to $250 million of its $700 million cash reserves to diversify its portfolio.
Billionaire entrepreneur and former U.S. President Donald Trump has broadened his cryptocurrency interests through the launch of Truth.Fi via his media company, Trump Media & Technology Group.
Expansion into Financial Services
A press release on January 29 announced that Truth.Fi will distribute up to $250 million from the firm’s $700 million cash reserves to diversify its balance sheet, a move approved by the board.
The capital will be invested in a range of options, including Bitcoin and similar cryptocurrencies or crypto-related securities, separately managed accounts (SMAs), and exchange-traded funds (ETFs).
Trump’s Crypto Ambitions
The move into financial services by Trump Media & Technology Group follows a trademark application filed in November. There were also reports that Trump’s company was contemplating acquiring Bakkt, a licensed crypto service provider. Trump has also shown support for the decentralized finance protocol World Liberty Financial.
Through his media company, which operates Truth Social, WLFI, two official Solana-based meme coins, and millions in digital assets, Trump is the first U.S. president to show connections to the cryptocurrency industry.
Supporters of cryptocurrency believe Trump’s involvement could lead to a more favorable regulatory environment for digital asset businesses. However, critics like Senator Elizabeth Warren have raised concerns about Trump’s selections, including Howard Lutnick, due to their connections to the cryptocurrency industry.
