Trump Family Plans Crypto Project to Challenge the Fed, Fuels Stablecoin Speculation

During a recent Rumble livestream, Donald Trump Jr. addressed mounting speculation linking the Trump family to various meme coins, clarifying that any official project from the family would be more substantial and long-term.

Trump Family's Crypto Ambitions

Trump Jr. and his brother Eric are working on a significant project aimed at addressing systemic financial inequalities, rather than engaging in the meme coin trend. Trump Jr. expressed strong support for Bitcoin, viewing it as a valuable hedge against traditional financial systems and the Federal Reserve (Fed). He stated:

“Bitcoin is the best way to beat the Fed. I think Bitcoin is great. I love what they’re doing with it. I think there’s going to be a lot of other options in the crypto space as well.”

Trump Jr. indicated that their project aims to leverage blockchain technology to disrupt the banking sector and improve access to financing and insurance for individuals traditionally excluded by the financial system. He suggested that decentralized finance (DeFi) could play a crucial role in this initiative:

“I think what we want to do is take on a lot of the banking world. There’s been a lot of inequality in that only certain people can get financing... decentralized finance is obviously very appealing to guys like me who’ve been debanked or haven’t been able to get insurance.”

He also cautioned against confusing this upcoming project with existing meme coins, emphasizing that any official announcements would come directly from the Trump family. On Twitter, Trump Jr. reiterated this, warning the crypto community about fake tokens falsely claiming affiliation with the Trump name.

Speculation on a Stablecoin

Given Trump Jr.’s focus on challenging the financial system, speculation has emerged that the Trump family might be considering launching a stablecoin. This comes amid former President Trump's vocal opposition to a Federal Reserve-issued central bank digital currency (CBDC), which he has termed "very dangerous."

Journalist Whitney Webb has raised concerns about the implications of what she terms synthetic CBDCs. She argues that while prominent figures like Trump and Florida Governor Ron DeSantis publicly oppose CBDCs, a synthetic CBDC issued by private entities, such as Wall Street banks, could pose similar risks. Webb suggests that this model—favoured by Jared Kushner during Trump’s presidency—would concentrate financial power and potentially erode privacy, rather than offering a genuine alternative to a government-issued CBDC.

Project Uncertainty and Market Reaction

To date, the Trump family has not confirmed plans to announce a stablecoin backed by Wall Street banks. Current market theories about the nature and timing of the Trump-linked crypto project remain speculative. Odds on Polymarket suggest a decreasing likelihood of a coin launch before the election, with the probability falling to 15% from 28%.

Trump Jr. has hinted at forthcoming details, suggesting that the project will aim to challenge the current financial system significantly. As such, the exact nature and timing of the project are still pending, and further updates are expected in due course.