Former President Donald Trump’s embrace of the bitcoin and crypto industries has officially spanned to the world of decentralized finance (DeFi). On Monday, he took to X (formerly Twitter) for a Spaces event, announcing World Liberty Financial (WLF)—a new crypto banking platform that promises to reshape borrowing, lending, and investing in the digital economy.
A New Financial Frontier
World Liberty Financial, as outlined during the two-hour event, aims to empower everyday users by offering a platform where people can borrow, lend, and invest in crypto assets. Trump was candid in his remarks, admitting that while he was “not overly interested” in crypto at first, his sons—particularly Eric, Donald Jr., and even 18-year-old Barron—helped open his eyes to the vast potential of decentralized finance.
Trump’s newfound enthusiasm was bolstered by the success of his NFT collections, which were purchased using cryptocurrency. “Whether we like it or not, we have to do it,” Trump remarked, recognizing crypto as a crucial part of the financial future and that America should lead, not fall behind, in innovation.
The Platform: World Liberty Financial
The backbone of World Liberty Financial is its innovative structure, which allows users to access a decentralized credit system built on Aave and the Ethereum blockchain. Users will be able to borrow, lend, and manage their crypto portfolios in an easy-to-use interface.
WLF will also introduce its own token, $WLFI, which will play a critical role in the platform’s governance. Token holders will have voting rights, allowing them to influence key decisions, such as adding new DeFi markets or integrating other blockchains. The $WLFI token is only available to accredited investors.
The Tokenomics
The $WLFI token distribution is straightforward but strategic. Founder Zak Folkman revealed that 20% of the tokens would be reserved for the founding team, which includes the Trump family. Another 17% will be used to reward users, and the remaining 63% will be available for public purchase. Importantly, there will be no early buy-ins or pre-sales—a notable shift from traditional token launches, signaling an effort to ensure fairness and transparency.
These tokens will be offered under Regulation D, allowing the project to raise capital without the need to fully register with the SEC, provided certain conditions are met. This was a key theme in Trump’s fireside chat, where he expressed frustration with what he described as the SEC’s “hostile” stance toward the digital currency sector.
SEC Scrutiny and Crypto Regulation
A point of tension throughout the event was the ongoing regulatory battles faced by crypto companies in the U.S. Trump echoed many industry voices that have criticized SEC Chair Gary Gensler for using enforcement actions to regulate, rather than creating clear guidelines. Trump’s involvement in World Liberty Financial comes at a time when his campaign promises include making the U.S. the “crypto capital of the planet,” positioning him as a pro–crypto advocate ahead of the 2024 elections.
Leadership Behind the Project
World Liberty Financial is a Trump family affair, but it also features an impressive team of crypto veterans and developers. Chase Herro and Zak Folkman, both instrumental in building WLF’s infrastructure, have deep experience in decentralized finance. Also on the team is Octavian Lojnita, who worked on smart contracts for Dough Finance, and Boga, a pseudonymous front-end developer with significant blockchain experience.
Notably, Steve Witkoff, a longtime Trump ally and real estate mogul, is also involved, lending the project institutional credibility. His son, Zach Witkoff, and attorney Alex Golubitsky round out the leadership team.
A Cautious Leap into DeFi
The announcement of World Liberty Financial marks a significant shift for Trump, who once called Bitcoin “based on thin air.” But his pivot is not without reason. The crypto industry has poured substantial sums into political campaigns this cycle, and Trump’s new venture could be seen as a strategic move to capture this financial backing.
While WLF promises to offer a streamlined interface for crypto investing and borrowing, it enters a space fraught with both opportunity and risk. The collapse of companies like Voyager Digital in 2022, which offered similar brokerage services, serves as a stark reminder of the volatility that still defines the sector.
However, with a team of experienced developers and Trump’s undeniable influence, World Liberty Financial could become a significant player in the evolving DeFi landscape. Whether it succeeds or faces the same challenges as its predecessors remains to be seen, but Trump’s pivot to crypto is a clear sign of where he believes the future lies.
Conclusion
In a world where financial freedom and innovation are constantly clashing with outdated regulatory frameworks, World Liberty Financial seeks to move the needle towards the people. It remains to be seen whether Trump’s leadership can navigate the challenges ahead, but with a solid team and a vision for decentralization, WLF is a bold step toward a new financial era—one where crypto could finally break free from the constraints of traditional finance.
