Key Insights: A Reuters report notes that President Donald Trump's family in January gained control of World Liberty Financial (WLF), a crypto venture that raised over half a billion dollars.

The move comes after the company sold governance tokens, known as WLFI, which entitle holders to vote on the project's direction. Despite the project's high profile, World Liberty has yet to launch a public platform, raising questions about its governance structure and future operations.

President Donald Trump’s family has taken control of crypto venture World Liberty Financial (WLF) after the company sold governance tokens and raised more than half a billion dollars, a Reuters report said.

The Trump family will now receive 75% of token-sale revenues and 60% of platform revenues once operational, according to the company’s website. This comes after co-founders Zak Folkman and Chase Herro were removed from control.

Earlier this year, World Liberty sold its WLFI tokens, a new form of governance token that grants holders voting rights over changes to the project’s underlying code and future decisions. These tokens cannot be traded.

The majority of the token sales took place after Donald Trump’s November election win, and the project’s high profile, combined with the new governance dynamics, brought it into sharper focus.

The project sold its WLFI tokens in mid-March, raising $550 million. Afterward, co-founders Zak Folkman and Chase Herro were removed from control, as disclosed on the platform’s website.

Out of the $550 million raised, the Trump family is entitled to around $400 million in fees, while co-founders Folkman and Herro will receive a portion of the remaining funds. Only 5% of the collected funds will be used to build the platform, according to the company.

However, experts in the crypto industry have raised concerns over the project’s heavy centralization, especially considering the structure of its governance tokens.

In contrast to typical decentralized finance (DeFi) projects that usually allow broader participation for investors, World Liberty’s model appears to be different.

A survey of leading DeFi platforms and input from industry experts suggest that World Liberty’s structure is not common in the sector.

Despite the platform remaining unreleased, WLF aims to decentralize financial services by removing intermediaries like banks. But critics say the current ownership and governance contradict that claim.

World Liberty to Launch USD1 Stablecoin Backed by Treasuries

On Mar. 25, World Liberty announced plans to launch USD1, a dollar-pegged stablecoin backed by short-term U.S. Treasuries, USD deposits, and cash equivalents.

BitGo will manage the stablecoin’s reserves, while BitGo Prime will provide brokerage services. The initial USD1 tokens will be issued on Ethereum and BNB Chain, with plans to expand to other networks.

Test transactions for USD1 on both chains, supported by BitGo and market maker Wintermute, have already been completed, showcasing early technical development.

While this highlights WLF’s ambition to expand in DeFi, its centralized governance model remains a subject of discussion.

As WLF progresses, regulatory clarity, platform development, and transparency will be crucial in determining its role within the crypto ecosystem.