Trump Family Embraces Bitcoin Amid Banking Barriers
Cryptocurrency Involvement of the Trumps: An Unveiled Account, as Revealed by Donald Trump Jr.
In a candid CNBC Squawk Box interview, Donald Trump Jr. revealed the Trump Organization's shift towards Bitcoin and cryptocurrency due to banking roadblocks. As political winds changed, the family found themselves in a lurch, struggling to secure loans with banks in New York treatment drastically altering — from dazzling developers to dismissive.
In the aftermath of Trump senior assuming office in January 2017, the banking landscape for the family turned bleak. Banks stopped answering calls, freezing out even long-standing projects, according to Trump Jr. Despite strong financial records and valuable real estate, obtaining financing became nearly impossible, a stark reflection of the challenges faced by ordinary Americans.
Staring down this new reality, the Trump family discovered a lifeline in cryptocurrency. Moving beyond traditional finance wasn't a frivolous trend chase; rather, it was a desperate step to ensure projects stayed afloat.
The Changing Financial Landscape
Before Trump's presidency, the Trump family enjoyed relatively easy access to banking and financing in New York. However, the political shift forced a complete overhaul of this relationship, with banks suddenly shunning their calls and withdrawing support for their projects. This situation was a stark reminder of the hurdles many Americans face, from loan denials to high fees.
Experimenting with Cryptocurrency
In the same interview, Trump Jr. explained the allure of blockchain. He highlighted title insurance, a tedious and costly process that could be streamlined using crypto tools. According to Trump Jr., blockchain has the potential to expedite basic tasks by eliminating middlemen and their hefty fees, making real estate transactions more efficient.
He emphasized that this foray into crypto wasn't a knee-jerk reaction to a buzzword, but a calculated move to keep projects alive. Faced with closed banking doors, the decision was a necessary pivot.
Meme Coin Controversy
The Trump family's crypto journey also includes a meme coin tied to the Trump name. Trump Jr. distanced himself from this project, referring to it as a "proof of concept" to demonstrate how marginalized individuals can still raise funds.
In mid-January 2025, President Trump launched the TRUMP coin, and Melania Trump presented MELANIA. It's speculated that Trump-affiliated groups hold 80% of both coins, raising questions about influence and the potential for actors to send money to powerholders without clear records.
Critics express concern that the anonymous nature of cryptocurrency could make it challenging to connect funds directly to politicians. However, Trump Jr. contends that shining a light on this sphere has been beneficial, with industry insiders expressing gratitude rather than condemnation.
Featured image from AP, chart from TradingView
Behind the Scenes
The Trump family's public embrace of Bitcoin and cryptocurrency stems from significant banking roadblocks they faced following Donald Trump's presidency. Here's a deeper look:
The Backstory of Banking Roadblocks
Before Donald Trump's presidency, the Trump family enjoyed relatively easy access to banking and financing in New York. However, once Trump took office in January 2017, banks began to freeze out the family's projects, making loans hard to secure. Despite solid financial records and valuable real estate, the family found it challenging to secure basic financing, mirroring the challenges faced by many everyday Americans[4][5].
Heading Towards Crypto
Struggling with these banking challenges, the Trump family started exploring alternative financial avenues. Donald Trump Jr. stated that they turned to crypto not because it was trendy but because it offered a vital lifeline to circumvent traditional banking systems that had become inaccessible to them[4].
Defining the Trump Family's Crypto Portfolio
The Trump family's involvement in crypto expanded beyond mere rhetoric, as evidenced by several ventures:
- Gryphon Digital Mining Merger: Eric Trump and Donald Trump Jr. are part of American Bitcoin, a bitcoin mining company that's merging with Gryphon Digital Mining to go public on the Nasdaq. This merger marks a significant expansion into the U.S. and Canadian energy sectors[2][3].
- Other Crypto Investments: The family also has investments in other crypto-related projects, although details about these are less explicit[1].
Overall, the Trump family's move into crypto was a calculated response to banking restrictions, aiming to find new financial channels to support their business ventures.
- The Trump family's exploration of cryptocurrency as a lifeline became more evident when they merged their bitcoin mining company, American Bitcoin, with Gryphon Digital Mining, aiming to go public on the Nasdaq.
- In addition to this public move, the Trump family also invested in other crypto-related projects, but details about these ventures remain less explicit, signifying a broader interest in technology-driven finance.
