Trump Media & Technology Group, the company behind Truth Social, revealed on Wednesday its plans to branch out into the financial services sector. As part of this expansion, they aim to launch a new fintech brand called Truth.Fi, with a focus on creating investment options centered on U.S. growth, manufacturing, energy, and what they refer to as the “Patriot Economy.” The company also hinted at the possibility of acquiring bitcoin and other cryptocurrencies in the future. Following the announcement, shares of Trump Media (DJT) saw an 8% increase. This move had been hinted at earlier with a trademark application filed in November.
Trump Media, the company behind President Donald Trump’s brand, is facing growing concerns over potential conflicts of interest as it expands into the financial sector. The company recently announced plans to diversify its cash holdings by investing in exchange-traded funds (ETFs), bitcoin, other cryptocurrencies, and crypto-related securities. Additionally, they intend to create a fintech brand called Truth.Fi, focusing on investment products and decentralized finance.
Devin Nunes, the CEO of Trump Media and former Republican congressman, highlighted the company’s evolution from creating a free-speech social media platform to adding a streaming service and now moving into the finance space. Trump Media is partnering with Charles Schwab to develop customized funds and provide investment advice.
The move raises concerns about potential conflicts of interest, especially since Trump is overseeing the federal government’s regulation of the financial and crypto industries. Experts argue that the regulatory agencies responsible for these sectors may face difficult questions regarding decisions that could impact the financial interests of President Trump and his family.
In December, Trump transferred his majority stake in Trump Media to a revocable trust, where he remains the sole beneficiary and his son, Donald Trump Jr., is the trustee. However, critics argue that this move doesn’t resolve the conflict of interest issues. Richard Painter, a former ethics lawyer for President George W. Bush, warned that Trump’s involvement in the crypto industry, while also issuing executive orders affecting it, could pose risks to both the market and the broader economy.
Trump Media has stated that it plans to launch its Truth.Fi products and services later this year, pending necessary approvals from financial regulators.