Former President Donald Trump is now offering KYC (Know Your Customer) verification for participants of World Liberty Financial (WLFI), a decentralized finance (DeFi) platform.
What Happened: Trump took to X (formerly Twitter) to announce the opening of WLFI's whitelist, marking this as a significant step toward his ambition of making America the crypto capital of the world.
World Liberty Financial is designed as a DeFi money market that allows users to borrow, lend and earn interest on cryptocurrencies, removing traditional financial intermediaries.
A governance token, WLFI, will be issued, granting holders voting rights over the platform's future.
However, the token will be non-transferable and non-yielding, differing from most crypto assets that can be traded or generate passive income.
Notably, 63% of the WLFI token supply is reserved for accredited investors, limiting participation to individuals with a net worth exceeding $1 million or other specific qualifications.
This has led to skepticism, with critics questioning how the project's aim to serve unbanked and underserved communities aligns with its exclusive investor criteria.
The launch has not been without controversy.
Concerns over potential conflicts of interest have surfaced, especially with Trump’s political ambitions for the 2024 election.
Legal experts, such as Ciara Torres-Spelliscy, have pointed out possible violations of the Constitution's Emoluments Clause if foreign governments were to use the platform to curry favor with a Trump-led administration.
Further adding to the scrutiny is the involvement of Chase Herro, a partner in the WLFI project and former entrepreneur linked to Dough Finance, a failed DeFi venture that collapsed due to a hack earlier this year.
Despite these challenges, Trump remains optimistic about the project. "Crypto’s just one of those things we have to do, whether we like it or not," he said in a recent interview.
His son, Donald Trump Jr., has also expressed support for DeFi, arguing that it depoliticizes finance, allowing it to operate free from government influence.
While the venture has sparked debate, Trump’s pivot to crypto has been largely welcomed by parts of the blockchain community, highlighting the increasing influence of digital assets in U.S. politics.
What’s Next: The launch of WLFI and its broader implications for the crypto market are expected to be a focal point at Benzinga’s Future of Digital Assets event on Nov. 19.
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