HONG KONG – World Liberty Financial (WLFI), the cryptocurrency project linked to the Trump family, is expanding beyond digital assets with plans to launch a foreign exchange platform called World Swap. The announcement, made by co-founder Zak Folkman at the Consensus Hong Kong conference on , signals an ambition to build a comprehensive financial ecosystem around its USD1 stablecoin.
World Swap aims to disrupt the traditional remittance market, which Folkman characterized as charging excessive fees – ranging from 2% to 10% per transaction – for cross-border transfers. The platform’s core proposition is to simplify these transfers by abstracting away the complexities of cryptocurrency wallets and blockchain technology, offering users a payment experience similar to established apps.
The move into foreign exchange represents a significant expansion for WLFI, which has been rapidly developing its financial services offerings. The company recently launched World Liberty Markets, a lending platform that has already attracted “hundreds of millions of dollars” in deposits, according to Folkman. These developments are centered around USD1, a stablecoin pegged to the U.S. Dollar and, the company states, backed by cash and cash equivalents.
The planned launch of World Swap was foreshadowed by trademark filings discovered by crypto users in late January, indicating the company’s intent to enter the forex space. AMG Software Solutions LLC, the entity owning WLFI’s intellectual property, registered trademarks related to World Swap, suggesting a deliberate and planned expansion.
The timing of this expansion is noteworthy. WLFI launched in , coinciding with Donald Trump’s presidential campaign, and quickly drew attention due to the involvement of the Trump family. Initial trading of the WLFI token saw a significant price drop, falling roughly 50% from its initial value, but remained above early purchase prices for many investors. As of , the Trump family’s stake in WLFI was valued at approximately $5 billion, making it the largest component of Donald Trump’s reported fortune.
The project’s origins lie in a desire to “democratize access to DeFi,” echoing the slogan “Make Finance Great Again.” WLFI aims to provide tools for borrowing, lending, and earning yields on digital assets, positioning itself as a gateway to decentralized finance for a broader audience. The company’s strategy involves leveraging the Ethereum blockchain and utilizing smart contracts to ensure transparency.
However, the rapid growth and political connections of WLFI have also raised questions. The launch occurred during a presidential campaign, prompting scrutiny regarding potential conflicts of interest should Trump return to office and be responsible for regulating the cryptocurrency industry. The company’s revenue-sharing model with the Trump family, which has already generated over $500 million, has also drawn attention.
Folkman indicated that further details regarding World Swap will be revealed at an event at Mar-a-Lago later this month. This event is expected to provide a more comprehensive overview of the platform’s functionality, target markets, and competitive advantages. The company is positioning itself as a “full-stack financial ecosystem,” suggesting a broader vision beyond simply offering cryptocurrency-based services.
The success of World Swap will likely depend on its ability to overcome the inherent challenges of the foreign exchange market, including regulatory hurdles, competition from established players, and the need to build trust with users. The platform’s reliance on the USD1 stablecoin will also be crucial, as its stability and liquidity will directly impact the user experience. The company’s ability to deliver on its promise of lower fees and simplified transfers will be key to attracting customers and challenging the dominance of traditional remittance providers.
The expansion into forex represents a bold move for WLFI, signaling a commitment to building a comprehensive financial platform. Whether the company can successfully navigate the complexities of the financial industry and establish itself as a viable competitor remains to be seen, but the launch of World Swap marks a significant step in its evolution.
