Trump Media & Technology Group (TMTG) has formally entered into an agreement to launch several exchange-traded funds (ETFs) through its fintech brand, Truth.Fi. These ETFs, focusing on cryptocurrencies and the energy sector, will be accessible via Crypto.com’s broker dealer, as per a company press release.
Truth.Fi, TMTG’s fintech division, announced the official signing of an agreement with Crypto.com, a leading global cryptocurrency platform. This partnership facilitates the launch of "Made in America" themed ETFs, initially revealed last month. TMTG, known for its Truth Social platform, extended its operations to financial services in January with the launch of Truth.Fi, marking its official venture into the ETF market. Previously, TMTG secured an agreement with Charles Schwab to introduce separately managed accounts.
Over the past year, TMTG has significantly expanded its digital business portfolio beyond Truth Social. Last year, the company launched a streaming service, and this year marked progress in developing a fintech platform. Truth.Fi positions itself within the “Patriot Economy,” representing a conservative movement to establish a parallel financial system, challenging what it perceives as the liberal-leaning nature of traditional financial institutions. By launching its own financial products, TMTG and similar companies aim to compete with established firms.
TMTG’s ETFs, branded as “Made in America,” will include digital assets and securities from sectors such as energy, according to a company statement. These ETFs will be marketed through Crypto.com’s broker dealer, Foris Capital US LLC.
Yorkville Advisors, a long-term financial partner of TMTG, is involved in the company’s financial services initiatives. A subsidiary of Yorkville will act as an asset manager for the ETFs. Additionally, Yorkville serves as the Registered Investment Advisor for TMTG’s investment offerings via Charles Schwab.
The financial relationship between TMTG and Yorkville is notably profound. The companies have a standby equity purchase agreement, enabling TMTG to sell shares at a discount to Yorkville, which is obliged to purchase them. Such agreements can benefit both entities, offering TMTG a reliable buyer for shares when capital is needed, while providing Yorkville the opportunity to buy shares at a discount and sell them at full market value.
In 2024, TMTG reportedly raised approximately $450 million through this arrangement, based on SEC filings. TMTG’s expansion into financial services, particularly focusing on cryptocurrencies, is a recent development in President Donald Trump’s business portfolio. As TMTG’s largest shareholder through a revocable trust managed by Donald Trump Jr., Trump has launched several cryptocurrency ventures. Shortly before his January inauguration, Trump and First Lady Melania Trump unveiled memecoins, which initially surged in value before experiencing a decline. Trump benefits financially not only from the coin’s value but also from trading fees incurred by investor transactions. Additionally, Trump has a separate crypto endeavor, World Liberty Financial, which supports borrowing, lending, and investing in cryptocurrencies.
This report was initially published on Fortune.com.
