Trump Media wades into crypto with the launch of TruthFi

Trump Media and Technology Group, the company owned by Donald Trump, has launched TruthFi, a financial platform offering investment products focused on Bitcoin, cryptocurrency, ETFs, and managed accounts.

On Wednesday, Trump Media announced that TruthFi will partner with Charles Schwab to provide investment services.

This move comes as Trump appointed Samantha Schwab, the granddaughter of Charles Schwab, as Deputy Chief of Staff at the US Treasury Department.

"TruthFi's launch marks a significant pivot for Trump Media, aligning with Donald Trump’s broader vision to position America as the 'crypto capital of the world,'” said Alan Orwick, co-founder of Quai Network, told TheStreet Crypto.

While the move has excited investors, some industry experts say the success of TruthFi depends on regulatory approval and funding.

"It’s still too early to tell how sustainable the project will be in the long run," said Patrick Gerhart, President of Banking Operations at Telcoin. “Trump Media will have to overcome some regulatory hurdles, secure funding, and finalize partnerships."

However, Gerhart acknowledged that TruthFi is helping push crypto further into the mainstream, adding that "large institutions see crypto as a mature asset class.”

Trump media stock surges after announcement

News of the venture led Trump Media’s stock ($DJT) to soar immediately following the news.

The company has been primarily associated with Truth Social, an underperforming social media platform that Trump fled to after being booted from Twitter in 2021. The 2022 sale of Twitter to Tesla billionaire Elon Musk led to Trump’s account being reinstated .

For Trump Media, the move into the fintech and crypto sectors is expected to help reverse the company’s laggard growth.

“The launch comes at a time when Trump Media has seen relatively modest revenues, with only $3.37 million reported over the last twelve months,” Orwick told TheStreet Crypto. “However, the stock jumped 15% upon the announcement of this fintech expansion, indicating strong investor confidence in the potential of TruthFi to diversify Trump Media’s revenue streams through crypto and other financial products."

At the time of writing, Trump Media’s stock is trading at $31.37.