Trump-Backed WLFI Attracts Big Money as Hut8 Buys In Above Market Price

Altcoins

Trump-Backed WLFI Attracts Big Money as Hut8 Buys In Above Market Price

A quiet yet powerful endorsement has just shaken the digital asset scene. Crypto mining powerhouse Hut8 has reportedly secured a long-term position in World Liberty Financial (WLFI) – a blockchain venture associated with the Trump family – by purchasing WLFI tokens directly from the project’s treasury at a premium price.

The transaction wasn’t a public sale. Instead, Hut8 acquired locked tokens from WLFI’s reserves at $0.25 each, above the prevailing market rate. The company confirmed that no new tokens were minted, meaning the deal didn’t dilute supply. For analysts, the over-market purchase suggests a clear signal: institutional players are willing to bet early on WLFI’s broader vision.

A Strategic Treasury Move

Crypto analyst Quinten Francois called Hut8’s decision “institutional conviction in action.” He noted that the miner isn’t chasing quick profits – the tokens were acquired for long-term treasury diversification, similar to how corporations have historically accumulated Bitcoin as balance-sheet assets. The premium pricing, he added, reflects expectations of significant future appreciation.

Observers have drawn parallels between this deal and the early accumulation of major assets like Bitcoin and Ethereum, when strategic buying created supply squeezes long before mainstream recognition set in.

A New Playbook for Tokenization

WLFI is positioning itself as more than a cryptocurrency issuer. CEO Zach Witkoff has unveiled plans to digitize high-value assets through blockchain tokenization – beginning with the Trump family’s real estate empire. Speaking with Bloomberg, Witkoff said he wants investors to own pieces of landmark properties such as Trump Tower Dubai through fractionalized tokens that trade on open markets.

“What if a single token could represent a share of an iconic building?” he asked, suggesting that tokenized real estate could make global luxury assets accessible in ways previously impossible.

The USD1 Stablecoin and On-Chain Commodities

The company’s ambitions extend well beyond property. At the Token2049 conference in Singapore, Witkoff outlined WLFI’s plan to bring commodities like oil and gas onto the blockchain, using the firm’s forthcoming USD1 stablecoin as the settlement layer. The stablecoin is designed to serve as the foundation for WLFI’s ecosystem – a digital currency backed by transparency and compliance, connecting traditional asset markets with DeFi liquidity.

Bridging Crypto and Everyday Finance

In parallel, WLFI is preparing to roll out a debit card that will allow users to spend crypto and tokenized assets directly. A pilot program is expected next quarter, with a full launch targeted for late 2025 or early 2026. Witkoff said the product aims to “turn blockchain assets into something people can actually use,” positioning WLFI at the intersection of fintech and Web3.

The convergence of these initiatives – a stablecoin, tokenized real assets, and institutional-grade treasury demand – has sparked growing speculation that WLFI could emerge as one of the few blockchain ventures capable of bridging Wall Street and crypto in a tangible way.

As Hut8’s premium purchase demonstrates, smart money may already be positioning itself for that possibility.


The information provided in this article is for educational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.

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Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.

Source: https://coindoo.com/trump-backed-wlfi-attracts-big-money-as-hut8-buys-in-above-market-price/