Trump Media launches FinTech brand Truth.Fi amid crypto surge

Trump Media launches FinTech brand Truth.Fi amid crypto surge

Company plans $250 million investment as it expands into financial services

Trump Media & Technology Group (TMTG), the parent company of Truth Social, has announced its entry into the financial technology sector by launching a new FinTech brand, Truth.Fi. The move, which follows Donald Trump’s return to the White House in November, has sent the company’s shares surging more than 11% in early trading.

Truth.Fi: A new player in digital finance

According to the company’s statement on Wednesday, Truth.Fi will offer financial services beginning in 2025, pending funding determinations and regulatory approvals. The Sarasota, Florida-based firm has also authorized an investment of up to $250 million through Charles Schwab to diversify its $700 million cash reserves.

The planned investments will span multiple asset classes, including exchange-traded funds (ETFs), separately managed accounts (SMAs), Bitcoin, and other cryptocurrencies. The SMAs will be developed in collaboration with Charles Schwab, which will provide strategic advice on TMTG’s investment approach.

Trump’s pro-crypto stance fuels expansion

TMTG’s pivot toward financial services comes amid a broader political shift favoring cryptocurrency, driven by Trump’s presidency and the election of several pro-crypto lawmakers to Congress. Since Trump’s electoral victory, Bitcoin and other digital assets have experienced a notable surge.

Throughout his campaign, Trump positioned himself as a strong advocate for digital currencies, pledging to transform the United States into the “crypto capital of the planet.” His administration’s policies are expected to foster an increasingly favorable regulatory environment for the sector.

Expanding beyond social media

Trump Media’s foray into FinTech is its latest expansion beyond its core social media business. Last year, the company launched Truth Streaming, a digital streaming platform aimed at conservative audiences. However, the venture has not been without financial challenges—TMTG reported a $19 million loss in its third-quarter earnings, attributed in part to legal expenses and streaming-related costs.

As the company navigates its expansion into digital finance, all eyes will be on how Truth.Fi positions itself in the competitive and rapidly evolving FinTech landscape.

Exit mobile version