Donald Trump's social media venture, Trump Media & Technology Group (NASDAQ:DJT), is exploring the launch of a cryptocurrency token and digital wallet as part of its expanding financial initiatives, according to a letter to shareholders on Tuesday.
The company, majority-owned by the former U.S. President, announced plans to introduce a utility token within a Truth digital wallet that can initially be used to pay for Truth+ subscription costs. The token would later be applied to other products and services in the "Truth ecosphere," which includes the social media platform, streaming service, and financial services hub.
Trump Media first hinted at crypto payment plans last November when it filed a trademark application with the U.S. Patent and Trademark Office for software designed to function as a digital wallet, enable digital asset trading, and process crypto payments on Truth.Fi.
The company's CEO, Devin Nunes, also highlighted plans to launch exchange-traded funds (ETFs) that will combine cryptocurrencies and traditional equities "with a Made in America focus" on the Truth.Fi platform. Trump Media has signed binding agreements with crypto exchange Crypto.com and asset manager Yorkville America Digital for these ETFs.
Earlier this year, Trump Media announced plans to invest up to $250 million of its cash reserves into various financial products. These include Bitcoin and other crypto tokens or crypto-related securities, which would be custodied by asset manager Charles Schwab.
Despite the crypto announcement, DJT stock showed little reaction, falling 0.52% in after-hours trading following the news. At Tuesday's market close, shares had fallen 3.29% to $24.98, marking a decline of more than 26% year-to-date.
The company will hold its annual meeting on Wednesday, May 1, where more details about these initiatives may be revealed.
Some lawmakers have expressed concerns that Trump's influence on policy could benefit his crypto ventures, especially since he transferred his 59% stake in Trump Media into a trust last December. Trump has also faced criticism for his role as "Chief Crypto Advocate" for World Liberty Financial, where he receives a portion of profits from a cryptocurrency project.
The potential Truth Social token launch comes at a time when the former president's influence in the crypto space is growing, despite his previous statements in 2019 that he wasn't "a fan" of Bitcoin and cryptocurrencies.
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