Trump Media and Technology Group Expands into Financial Services
On Wednesday, Trump Media and Technology Group (DJT), the parent company behind the social media platform Truth Social, made a significant announcement regarding its foray into the world of finance. The company revealed plans to launch a new financial services platform, aptly named Truth.Fi, which will focus on cryptocurrency and customized exchange-traded funds (ETFs).
The board of DJT has approved a substantial investment of up to $250 million in partnership with renowned asset manager Charles Schwab (SCHW). This investment is intended for the allocation towards customized separately managed accounts (SMAs), tailored exchange-traded funds (ETFs), and investments in bitcoin (BTC) along with other similar cryptocurrencies or crypto-related securities. This strategic move was outlined in a filing submitted to the Securities and Exchange Commission.
In addition to the investment, Charles Schwab will provide comprehensive advisory services to guide Truth.Fi’s investment strategies and overall financial direction, as stated in the official press release.
Devin Nunes, the CEO and Chairman of Trump Media, expressed enthusiasm about this new venture, stating, “Truth.Fi is a natural expansion of the Truth Social movement. We began by creating a free-speech social media platform, added an ultra-fast TV streaming service, and now we’re moving into investment products and decentralized finance.”
Following this announcement, shares of DJT experienced a notable increase, rising by 10.4% on Wednesday, reflecting investor optimism regarding the company’s latest venture.
Truth.Fi represents the latest initiative from Donald Trump-affiliated companies to delve into the burgeoning digital asset space. Notably, Trump and his family have previously supported the decentralized finance (DeFi) protocol known as World Liberty Financial. Additionally, just days before his inauguration on January 20, Trump launched an “official” memecoin on the Solana blockchain, which sparked a speculative frenzy among crypto enthusiasts and drew the ire of several prominent figures within the cryptocurrency industry.
