TMTG announced the launch of its FinTech brand Truth.Fi to expand into digital finance.
The company plans to invest up to $250 million through Charles Schwab across various asset classes, including Bitcoin.
Shares of TMTG surged more than 15% following the announcement.
Trump Media and Technology Group (TMTG), the parent company of Truth Social, the launch of its financial services and FinTech brand, Truth.Fi, on January 29. The company’s decision, backed by its board of directors, including Donald J. Trump Jr., aims to diversify cash holdings and tap into the digital finance sector. Following the announcement, shares of TMTG soared more than 15% in premarket trading.
With over $700 million in cash reserves as of December 31, 2024, TMTG intends to diversify beyond traditional assets. The Sarasota-based media entity revealed plans to invest up to $250 million through Charles Schwab, leveraging a wide array of investment options such as exchange-traded funds (ETFs), separately managed accounts (SMAs), Bitcoin, and other cryptocurrencies.
Truth.Fi Details
The company envisions Truth.Fi not only as a FinTech solution but as a movement aligned with its existing services, including the free-speech social media platform Truth Social and the streaming service Truth+. The news follows TMTG’s filing of a trademark application for Truth.Fi in November 2024, where it defined the product as a crypto payment solution and digital asset trading platform.
TMTG has appointed Charles Schwab for investment custody and strategic advice, while Yorkville Advisors will act as the registered investment advisor for its financial products.
Notably, Truth.Fi’s launch follows the recent inauguration of Donald Trump, who has to make America the “crypto capital of the planet” and has taken several steps to support the industry. The president has also launched his memecoin, Official Trump (TRUMP), which is at $27.22 with a market cap of $5.47 billion.
TMTG CEO Devin Nunes noted the group’s aim to support American-focused investment products and decentralized finance. He stated:
“Developing American First investment vehicles is another step toward our goal of creating a robust ecosystem through which American patriots can protect themselves from the ever-present threat of cancellation, censorship, debanking, and privacy violations committed by Big Tech and woke corporations.”
“Developing American First investment vehicles is another step toward our goal of creating a robust ecosystem through which American patriots can protect themselves from the ever-present threat of cancellation, censorship, debanking, and privacy violations committed by Big Tech and woke corporations.”
Potential Market Impact of the Launch
Analysts believe that TMTG would have to bear lower customer acquisition costs for Truth.Fi by leveraging Truth Social’s existing user base. The integration of financial services with social media and content platforms may provide a competitive edge over traditional FinTech firms.
Looking forward, the company expects to introduce its financial products this year, contingent upon regulatory approvals and finalized investment agreements.
