World Liberty Financial, the Trump family–backed crypto venture, has set up a $1.5 billion WLFI coin treasury, giving investors a way to bet on the token through the US stock market.
The move, tied to a deal with crypto payments firm ALT5, essentially turns the stock into a proxy for WLFI, letting traders speculate without holding the coin directly. The company even hyped the launch with an X post declaring, “One small step for mankind, one giant leap for WLFI.”
Critics, however, say the strategy is just Wall Street smoke and mirrors. Michael Green, chief strategist at Simplify, claims the setup funnels investor money into buying WLFI, inflating its market value while building a holding company with one mission, boost the token’s price. The plan has stirred fresh conflict of interest concerns given that the Trump family controls both a 22.5% stake in WLFI coins and 40% equity in World Liberty Financial. Green warns that wealthy investors could, in theory, curry political favor with President Trump by heavily investing in ALT5, pushing up the company’s stock value and signaling demand for WLFI in a way that directly benefits the family.
The White House dismissed the accusations. Press secretary Karoline Leavitt called the allegations “fabricated conflicts of interest” and insisted that neither the president nor his family have or will engage in such behavior. Still, the timing is notable, the Trump family teased World Liberty Financial last August, just before the 2024 election, with a “make finance great again” pitch. Since then, the company has launched USD1, a stablecoin pegged to the US dollar, and WLFI, which was originally meant solely as a governance token. That changed in July when WLFI holders voted overwhelmingly to make it tradable on the secondary market, though trading has yet to begin.
The WLFI treasury strategy mirrors the playbook of MicroStrategy, now simply Strategy, which famously built a massive bitcoin reserve worth over $74 billion, driving its stock far above the value of its holdings. The Trump-backed move comes amid a wave of similar “crypto treasury” plays hitting public markets since Trump’s reelection, many led by political insiders and crypto advocates. Investors like Brandon Lutnick, son of Commerce Secretary Howard Lutnick, and bitcoin proponent David Bailey have launched their own versions, while other companies with Chinese ties have raised hundreds of millions to buy bitcoin and even Trump’s memecoin.
Proponents argue these treasury vehicles can justify high valuations by generating yield on holdings, marketing derivatives, and issuing debt, comparing them to banks leveraging deposits. Pantera Capital’s Cosmo Jiang sees a solid thesis in why such companies could trade at a premium, while Thomas Braziel of 507 Capital says he’s “a bit bullish” and doesn’t see the setup as a major threat.
But for skeptics like Green, the WLFI treasury has a clear motive, to create a buyer of last resort for the token once it becomes tradable. And for others in the industry, the bigger risk isn’t market mechanics but the Trump family’s deep ties to the sector. Braziel warns that the political entanglement could backfire hard if Democrats regain the White House. “For Trump, if there’s no conflict there’s no interest,” he says.
With WLFI still awaiting its debut on secondary markets, World Liberty Financial’s $1.5 billion bet has already made waves in finance and politics. Whether it becomes a high-return crypto darling like Strategy or a lightning rod for regulatory scrutiny remains to be seen.
Leo Cruz brings sharp insights into the world of politics, offering balanced reporting and analysis on the latest policies, elections, and global political events. With years of experience covering campaigns and interviewing world leaders, Leo ensures readers are always informed and engaged.
