According to the New York Times, Trump Media & Technology Group (TMTG), the media company of former President Donald Trump, filed a trademark application for a new project called "TruthFi" on November 19. This platform is positioned to become a cryptocurrency payment service, focusing on financial custody and digital asset transactions.
A new breakthrough or a diversification strategy?
Although the details of the operation and the level of completion have not been disclosed, this move is assessed by analysts as an effort by Trump Media to expand its business activities beyond the social media platform Truth Social, which is heavily dependent on the frequency of posts and the personal influence of Donald Trump.
Currently, Trump Media has fewer than 36 employees, so to realize a large-scale crypto project, the company may have to go through acquisition deals. Sources say Trump Media is negotiating to acquire the crypto company Bakkt, a platform that provides cryptocurrency trading solutions and integrated on-ramp services for partners. This information has caused Bakkt (BAKKT) stock to surge, but both parties have not yet made an official comment.
According to lawyer Josh Gerben, Trump Media's trademark filing may be just the first step in protecting the TruthFi name if the project is implemented. Companies often use this method to maintain ownership for many years before officially launching the product.
Although valued at around $6.5 billion, Trump Media only generated revenue of over $1 million in Q3 2024, mainly from advertising on the Truth Social platform. However, this social media platform is struggling to attract new users and advertisers, despite the appeal of Trump's name. To improve revenue, the company needs to find new income sources, and the TruthFi project may be the solution.
The change in Trump's view on crypto
Donald Trump, who was once skeptical about cryptocurrencies, has changed his stance during this year's election campaign, becoming an active supporter of the industry. He announced that he would appoint crypto-friendly leaders to the U.S. Securities and Exchange Commission (SEC), replacing the strict approach under the Biden administration. He even considered establishing a position in the White House to focus on cryptocurrency policy.
Additionally, the Trump family and some other partners have launched the World Liberty Financial crypto project, an independent crypto company, with the expectation of benefiting from future regulatory changes.
=> Read more: The Trump family's World Liberty Financial project officially opens KYC
