Trump Media introduces Truth.Fi fintech amidst the bitcoin boom

Truth Social’s parent company, Trump Media and Technology Group, announced Wednesday that its board of directors has approved the launch of Truth.Fi, a financial services and FinTech brand, driving the firm’s shares up more than 11% in early trading.

The company’s board also approved an investment of up to $250 million through Charles Schwab as part of its effort to diversify its cash holdings, which surpassed $700 million at the end of the previous year.

The Sarasota, Florida-based company intends to distribute these money to a variety of financial vehicles, including exchange-traded funds, separately managed accounts (SMAs), Bitcoin, and other cryptocurrencies. Trump Media’s entry into the financial industry follows Donald Trump’s election to the White House in November and the election of several pro-cryptocurrency lawmakers to Congress, which resulted in an increase in Bitcoin and other cryptocurrency prices.

The SMAs will be created in partnership with Charles Schwab, who will provide strategic guidance on TMTG’s Truth.Fi investments and strategy. Truth.Fi products and services will be available in 2025, after funding levels are determined and relevant approvals are received from financial regulators, according to the startup.

Trump Media has also ventured into streaming platforms, launching Truth+ Streaming last year. In November, the firm recorded a $19 million loss in the third quarter due to legal bills and costs associated with its TV streaming agreement.