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Julia Smith
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Julia Smith
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Key Takeaways:
- An entity linked to Donald Trump and his family now holds a 60% equity share in World Liberty Financial, replacing its original co-founders as the controlling party.
- According to the report, the Trump family is entitled to $400 million in fees in regards to the entity.
- With Trump positioned as the platform’s “chief crypto advocate” and his sons holding key Web3-related roles, the move could draw political scrutiny ahead of upcoming crypto legislation discussions in Congress.
An entity in which U.S. President Donald Trump and his family hold a 60% equity share has replaced World Liberty Financial co-founders Zak Folkman and Chase Herro as a controlling party of the novel crypto platform, a Monday report from Reuters claims.
The Trump Family’s Connection To World Liberty Financial
Reuters states that the developing crypto platform announced this past January that the Trump family had “taken control of the business,” as seen in the fine print on the World Liberty Financial website.
“DT Marks DEFI LLC, an entity affiliated with Donald J. Trump and certain of his family members, own approximately 60% of the equity interests in WLF Holdco LLC, which holds the only membership interest in World Liberty Financial, Inc., a Delaware non-stock corporation and which is developing the WLF protocol and operates the WLF governance platform,” the website states.
According to the March 31 report, the Trump family now gets a claim on 75% of net revenues generated from token sales and 60% from World Liberty operations as a whole.
With the Trump family permitted to about $400 million in fees, Reuters estimates that World Liberty Financial will possess only 5% of the $550 million generated once Folkman and Herro receive their cut.
WLF Introduces Stablecoin Ahead Of Crypto Policy Talks
Trump, whose name has been affiliated with a handful of Web3-related projects, placed his assets and investments in a trust managed by his children ahead of his inauguration on January 20.
Trump and his family have close ties to the blockchain sector as a whole, with Trump deemed as World Liberty Financial’s official “chief crypto advocate.”
His sons, Donald Jr. and Eric, have been given titles as the crypto platform’s “web3 ambassadors,” while Barron serves as its “defi visionary.”
Just last week, World Liberty Financial announced it would be launching a USD-pegged stablecoin known as USD1.
However, it remains to be seen whether the move will ruffle U.S. lawmakers’ political feathers ahead of a crypto market legislation session scheduled in the House of Representatives for April 9.
Frequently Asked Questions (FAQs)
World Liberty Financial is a developing crypto platform founded by Zak Folkman and Chase Herro that’s focused on offering blockchain-based financial services.
Donald Trump is named the “chief crypto advocate,” while his sons, Donald Jr. and Eric, serve as “web3 ambassadors.” Barron Trump holds the title of “defi visionary.”
With upcoming congressional discussions on crypto legislation, WLF could face increased regulatory scrutiny, particularly regarding stablecoins, decentralized finance operations, and potential conflicts of interest.
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