Dec 31 (Reuters) - Trump Media and Technology Group said on Wednesday it will distribute a new digital token to its shareholders, deepening its push into digital assets as policy support for cryptocurrencies builds in Washington.
Shares of the company linked to U.S. President Donald Trump, which operates his social media platform Truth Social, were last up 5% in early trading.
Cryptocurrencies have become a recurring feature of the family’s business empire, with critics pointing to potential conflicts of interest given Trump’s pledge to make the U.S. the "crypto capital of the planet."
Since his return to the White House in January, the climate for crypto businesses has turned more favorable, with legislation passed in the summer to cover parts of the sector. Several enforcement cases were abandoned.
Trump courted industry cash on the campaign trail by pledging to be a "crypto president," while his family’s own crypto ventures, including World Liberty Financial, have helped push the sector further into the mainstream.
Days before his inauguration, Trump launched a meme coin called $TRUMP, which reached more than $14.5 billion in market value before crashing.
The White House has rejected allegations of conflicts of interest, saying Trump’s multibillion-dollar real estate, golf, media and other business interests are held in a trust managed by his children.
DJT shareholders will receive one new digital token for each share they hold, the company said, with more details on the launch expected in 2026.
The new token is expected to operate on the Cronos blockchain.
The launch comes amid a downturn in crypto prices, with bitcoin down 6% this year and heading for its first annual loss since 2022.
The pullback reflects a broader shift away from risk as investors cut exposure to more volatile assets.
(Reporting by Manya Saini in Bengaluru and Hannah Lang in New York; Editing by Krishna Chandra Eluri, Vidya Ranganathan, Rod Nickel)
