The Trump Organization, led by former US President Donald Trump’s sons, seems poised to make a loud entrance into the world of cryptocurrencies and decentralized finance (DeFi).

Recent statements from Eric Trump, the executive vice president of the Trump Organization, have hinted at an upcoming crypto initiative that could potentially disrupt traditional banking and finance sectors.

In early August 2024, the crypto community was surprised after Eric Trump took to the social media platform X (formerly Twitter) to express his newfound enthusiasm for the crypto space.

“I have truly fallen in love with Crypto / DeFi. Stay tuned for a big announcement,” he wrote in an X post, igniting speculation about the Trump Organization’s plans in the digital asset space.

Also read: Alleged Trump-Backed Crypto Token RTR Crashes After Trump Family Denies Ties

in a similar fashion, Donald Trump Jr. told his millions of followers that they – probably referring to the Trump empire – were gearing up to “shake up” the sector with a “huge” announcement.

These initial teases were followed by a more substantial interview with the New York Post on August 14, 2024, where Eric Trump provided additional, although still vague, details about the upcoming project.

Trump Claims the Project is About “Digital Real Estate” – What Does That Mean?

In his interview with the Post, Eric described the forthcoming initiative as “digital real estate.” While he didn’t elaborate on the specifics, this term has led to various interpretations within the crypto community.

“It’s equitable. It’s collateral anyone can get access to and do so instantly,” Trump further commented. “I don’t know if people realize what a shake-up that is for the world of banking and finance. I hope we can help change that.”

The concept of “digital real estate” could potentially refer to tokenized real-world assets, where physical real estate owned by the Trump Organization is tokenized, allowing investors to purchase fractional ownership through blockchain technology.

Alternatively, it might involve a DeFi lending platform that allows users to lend or borrow funds by using digital assets as collateral. Finally, a less likely but still possible interpretation could be virtual property in a metaverse or blockchain-based virtual world.

Banking the Unbanked – Another Likely Facet of the Trump’s Project

Eric Trump’s statements suggest that the Trump Organization sees cryptocurrency and DeFi as tools for financial inclusion. He claimed that “over half this country right now cannot be banked” and expressed hope that their initiative could change this situation.

He further argued that, if these unbanked individuals turn to the traditional system, “they will be rejected for most loans from most institutions.”

“But with this technology they could have the ability to almost instantaneously be approved or denied from a lender based on math, not policy. Money could be in their account in minutes, not months.”

The younger Trump also hinted at some personal motivations behind the project, referencing what he perceives as financial discrimination faced by his family. “My family has certainly had our fair share of financial discrimination,” he stated. “I’ve had a unique perspective on how easily people can be kept out of certain markets. It slows everything down. It’s not right.”

Timeline and Official Announcement

While the crypto community eagerly awaits more details, the Trump Organization is keeping its cards close to the chest. Eric Trump has stated that the full announcement will come “the moment everything is final and ready to go.”

This cautious approach may be a response to the initial speculation that came after their first comments. Some enthusiasts have been deceived by bad actors behind devious meme coins and crypto projects that have claimed some sort of association or collaboration with the Trump family.

This prompted Trump to issue a warning on X: “The only official project will be announced directly by us, and it will be fair for everyone,” he posted. “Don’t be fooled—stay tuned for the real deal.”

One token in particular that was reportedly tied to the Trumps but that failed to live up to this promise was named DJT. Last week, the value of this asset plunged by nearly 97% just hours before the two sons made comments about the upcoming projects.

In previous instances, Martin Shkreli, the infamous American entrepreneur known as ‘pharma bro’ touted that this meme coin was the “official Trump meme coin” and said that he collaborated with Donald Trump’s youngest son, Barron, to create it.

These claims were largely unsubstantiated as none of the Trumps backed the token at any point. However, they did not distance themselves explicitly from it either. They primarily made general comments about avoiding fake offerings and scams associated with Trump’s image.

The Trump Family’s Growing Interest in Crypto

The upcoming initiative is not the Trump family’s first brush with cryptocurrency. During his presidency, Donald Trump was notably skeptical of Bitcoin and other cryptocurrencies. However, his views on the sector appear to have changed radically since then.

Since he was out of office and started ambitioning a second term, the Trump campaign has embraced digital assets in various ways. In December 2022, Donald Trump launched a collection of digital trading cards featuring himself in various heroic poses.

According to his 2022 tax filings, Trump may have received between $100,000 and $1 million from the sale of these non-fungible tokens (NFTs). The cards depicted Trump in heroic postures and in stoic attitude in front of significant landscapes and monuments.

Despite initial mockery, the collection sold out quickly and has seen significant trading volumes on the secondary markets. Additionally, the Trump campaign began accepting cryptocurrency donations in 2024, allowing supporters to contribute using Bitcoin and other digital assets.

Recent reports indicate that Trump has raised over 4 million from a mix of digital token donations that including Bitcoin (BTC), Ether (ETH), and Ripple (XRP).

“While the Biden-Harris Administration stifles innovation with more regulation and higher taxes, President Trump is ready to encourage American leadership in this and other emerging technologies,” commented Brian Hughes, a campaign aide for Trump.

These moves suggest a growing recognition within the Trump family of the potential of blockchain technology and digital assets, both as fundraising tools and as a means of engaging with a tech-savvy base.

What Could the Trumps Project Imply to the Crypto Space?

If the Trump Organization’s crypto initiative lives up to the hype, it could have significant implications for the broader cryptocurrency and DeFi landscape. The Trump brand, despite its extremely polarizing nature, could bring increased attention and a large number of new users to the crypto space. However, a high-profile entry into the crypto market by a former president’s company might also attract additional regulatory attention to the sector.

If the project indeed involves tokenizing real-world properties, it could set a new precedent for how real estate is bought, sold, used as an investment vehicle, and traded in the digital age. This could potentially open up the door for new property ownership mechanisms, making real estate more accessible to a broader range of investors. It could also just be a way to funnel more money into the pockets of the Trumps (like every other Trump-tied crypto project)

While the crypto community has shown interest in the Trump Organization’s plans, the initiative will likely face several challenges. Any crypto project, especially one involving real estate or financial services, will need to navigate a complex regulatory landscape.

Several companies in the crypto sector like Coinbase and MetaMask have been sued by the United States Securities and Exchange Commission (SEC) for offering unregistered securities and violating securities laws.

Also read: XRP Spikes After Longstanding SEC Case Ends With $125M Fine

These legal complaints have mostly targeted savings products that generate interest income for their holders.

Moreover, the Trump brand’s controversial nature might deter some potential users or partners in the crypto space. Building a robust and secure crypto platform, especially one dealing with real estate or financial services, requires significant technical expertise, which may present another hurdle for the organization.

While many details about the Trumps’ project remain unclear, the initiative has the potential to bring increased attention to the crypto space and possibly introduce innovative approaches to real estate investment and decentralized finance.

As the crypto community eagerly awaits the official announcement, it’s clear that the Trump family is convinced that the crypto sector is a profitable and attractive one. Whether their project proves to be a game-changer for the industry or a mere footnote in the ongoing evolution of digital assets remains to be seen.