Trump Media inks deal with Crypto.com: How will Singaporean firm create 'made-in-America' ETFs?

Trump Media inks deal with Crypto.com: How will Singaporean firm create 'made-in-America' ETFs?

  • 25.03.2025 11:15
  • firstpost.com
  • Keywords: No

Trump Media, led by President Trump, partners with Crypto.com to launch "Made-in-America" ETFs despite Crypto.com's Singaporean origin and past legal issues with US regulators. The deal aligns with the Trump administration's lenient approach to crypto firms, as the SEC has paused enforcement actions against major players like Coinbase and Binance.

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Context

Analysis of Trump Media & Crypto.com Partnership

Deal Overview

  • Partnership: Trump Media & Technology Group (behind Truth Social) has partnered with Crypto.com to launch "Made-in-America" ETFs.
  • Products: The ETFs will feature Cronos, a cryptocurrency tied to Crypto.com, and be offered under the Truth.Fi brand.
  • Availability: Launching later in 2025 across the US, Europe, and Asia, pending regulatory approval.

Market Context

  • Regulatory Shift: President Trump’s administration has taken a lenient approach to crypto firms, with the SEC pausing or dropping legal actions against major companies like Coinbase Global and Binance Holdings within its first 100 days.
  • Crypto.com's Position: Despite being headquartered in Singapore and facing US regulatory challenges last year, Crypto.com is now collaborating with Trump Media.

Strategic Considerations

  • Political Influence: President Trump’s $2.4 billion stake in Trump Media (held through a trust managed by Donald Trump Jr.) positions him as the largest shareholder, likely influencing strategic decisions.
  • Regulatory Dialogue: The partnership suggests alignment with the administration’s goal to develop clear crypto regulations, as stated in earlier statements.

Competitive Dynamics

  • Technology & Assets: Crypto.com provides both digital assets and underlying technology for the ETFs, leveraging its expertise in blockchain and cryptocurrency.
  • Brand Leverage: The "Made-in-America" branding aligns with patriotic consumer sentiment, potentially boosting market appeal despite foreign origins.

Long-Term Implications

  • Market Expansion: The deal could expand Crypto.com’s presence in key markets while enhancing Trump Media’s foothold in the financial technology sector.
  • Regulatory Uncertainty: While the current regulatory environment is favorable, future scrutiny may impact the success of these ETFs.

Regulatory Environment

  • Potential Scrutiny: The partnership may draw attention from regulators due to Crypto.com’s past legal issues and its foreign origins, despite the "Made-in-America" branding.

This collaboration highlights the evolving landscape of cryptocurrency and traditional finance, with significant implications for both businesses and regulators.