President Donald Trump has, along with Elon Musk, been singing the praises of crypto for a while now, so it comes as little surprise that news is breaking that his media venture, Truth Social, is broadening its scope beyond social networking by launching a financial services platform with plans to allocate up to $250 million towards cryptocurrency and other investments.
Trump Media and Technology Group (TMTG), in which Trump holds a majority stake, revealed earlier today its intentions to introduce Truth.Fi. This new entity is expected to focus on acquiring bitcoin, other cryptocurrencies, and a mix of traditional assets. Following the announcement, TMTG's stock saw a 10 percent surge in early trading on the New York market.
According to the company, Truth.Fi will prioritize funding initiatives that drive American economic growth, particularly in manufacturing and energy sectors, while also supporting businesses aligned with the "Patriot Economy."
This move aligns with Trump’s continued advocacy for digital assets, a stance he has maintained both throughout his campaign and during his presidency. Last year, he and his sons established a cryptocurrency-focused firm called World Liberty Financial. More recently, he and former First Lady Melania Trump introduced memecoins, a type of cryptocurrency lacking intrinsic business backing or revenue streams.
TMTG currently operates Truth Social, a conservative-leaning social media network, along with a streaming service. It previously attempted to acquire Bakkt, a digital asset trading platform with a market cap of $150 million, in November, though that deal did not materialize. The company's CEO, Devin Nunes, a former Republican congressman and chair of Trump's intelligence advisory board, emphasized that Truth.Fi aligns with the broader mission of Truth Social.
"Truth.Fi is a natural expansion of the Truth Social movement," Nunes stated. "American patriots can protect themselves from the ever-present threat of cancellation, censorship, debanking, and privacy violations committed by Big Tech and woke corporations."
The investment strategy of Truth.Fi will be guided by financial services firm Charles Schwab, which will oversee asset custody and provide advisory services. While Schwab does not currently facilitate direct trading in cryptocurrencies like bitcoin, it has indicated it would explore the space if regulatory conditions allow.
Last week, the Securities and Exchange Commission took steps to ease restrictions on banks holding digital assets for clients, potentially paving the way for greater institutional involvement in crypto markets. TMTG disclosed that as of the end of 2024, it held more than $700 million in cash reserves.
"As a matter of policy, we do not comment on any current or former client activities," Charles Schwab stated in response to an inquiry from the Financial Times.
In a related development, Samantha Schwab, granddaughter of brokerage founder Charles Schwab, was recently appointed deputy chief of staff at the Treasury Department.
TMTG’s financial expansion was announced just a day after Elon Musk’s X revealed plans to collaborate with Visa on a financial services initiative named X Money Account. The platform will introduce peer-to-peer payments using Visa’s infrastructure, with a rollout expected later this year.
Additionally, in another notable connection between Trump’s circle and the cryptocurrency industry, Chris LaCivita, who serves as co-campaign manager for Trump’s 2024 presidential run, has joined the global advisory board of Coinbase, a major crypto exchange.
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