World Liberty Financial (WLF), a decentralized finance (DeFi) initiative aimed at delivering cryptocurrency-based financial services, has undergone a significant leadership transformation. An entity linked to former President Donald Trump has supplanted the original founders, securing a 60% equity stake and establishing control over the project.
Launched with the ambition to function as a crypto banking platform, WLF successfully raised over $550 million through the sale of governance tokens. These tokens, while granting holders voting rights, are non-tradable, resulting in a centralized governance structure that grants the Trump-affiliated entity substantial influence over the project’s direction.
The Trump family’s involvement has attracted attention due to the project’s financial arrangements. The family is entitled to approximately 75% of the net revenues from token sales and 60% from operational activities, translating to an estimated $400 million in fees. Despite the significant capital raised, WLF has yet to publicly launch its platform and currently operates with a minimal staff.
Critics have expressed concerns about potential conflicts of interest and the project’s centralized control, which is atypical for DeFi ventures that traditionally emphasize decentralization. The governance token structure, favoring the Trump-affiliated entity, has raised questions about the equitable distribution of control and financial benefits within the project.
In addition to their involvement with WLF, the Trump family has expanded their footprint in the cryptocurrency sector. They have announced plans to launch a new stablecoin, USD1, pegged to the U.S. dollar and backed by short-term U.S. Treasurys and other cash equivalents. This initiative aligns with broader efforts to position the United States as a leading market for digital assets.
Furthermore, Eric Trump and Donald Trump Jr. have invested in American Bitcoin, a bitcoin-mining company. Through American Data Centers, they have merged with and acquired a 20% stake in a Hut 8 majority-owned entity, aiming to create one of the world’s largest bitcoin mining operations and build a substantial bitcoin reserve.
These ventures underscore the Trump family’s deepening engagement in the cryptocurrency industry, reflecting a strategic shift towards digital finance and asset management.
