WASHINGTON: Trump Media and Technology Group Corp plans to issue a new cryptocurrency, which will be distributed among its shareholders.
The company, which operates President Donald Trump’s Truth Social platform, said the new token will be allocated to investors in a partnership with crypto exchange Crypto.com, according to a statement Wednesday.
It is expected to operate on the Cronos blockchain, a network supported by Crypto.com. The coin is the latest in a string of cryptocurrencies attached to Trump.
World Liberty Financial (WLFI), a decentralised finance project supported by the Trump family, operates the WLFI token and the USD1 stablecoin.
The president also released his own Trump memecoin earlier this year, alongside a similar coin promoted by his wife, Melania.
Each of Trump Media’s shareholders will receive one token per share, the company said. Trump himself is the company’s largest shareholder with a 41% stake in the business, according to data compiled by Bloomberg.
His return to the White House in January brought about a more favourable regulatory environment for crypto businesses, with new legislation passed to oversee parts of the sector in the summer.
A number of enforcement cases against crypto companies have been paused or dropped by regulators.
“We look forward to utilising Crypto.com’s blockchain technology and improving regulatory clarity to implement this first-of-its kind token distribution, reward Trump Media shareholders, and promote fair and transparent markets,” said Trump Media chief executive officer Devin Nunes.
The token would be yet another venture for the social media company, which has unveiled plans for a wide array of new business lines this year – including nuclear fusion, stockpiling other cryptocurrencies, offering financial products and setting up markets for sports wagering.
Token holders may receive additional rewards, the company added, such as benefits or discounts tied to Trump Media products.
The coins won’t represent ownership of Donald John Trump or DJT shares, and may not be transferable or exchanged for cash.
The company’s stock was up about 3.3% in pre-market trading Wednesday. — Bloomberg