Donald Trump's mysterious crypto platform World Liberty Financial has allowed "Know Your Client" (KYC) verification for accredited investors based in the US and for non-U.S. users. However, it is still unclear what services the platform will provide. This was reported by The Verge.
Donald Trump, his sons, and business partners have made many promises that World Liberty Financial will "free the average American from the big banks and financial elites." Donald Trump Jr. says that the platform will help people who have gone bankrupt or do not have bank accounts.
None of the project participants said how exactly this will happen or what exactly World Liberty Financial does.
Here's what we know: World Liberty Financial has stated that its goal is to promote "mass adoption of stablecoins and decentralized finance." At the end of the project's two-hour presentation at X Space, World Liberty Financial advisor Corey Kaplan said that the platform will "sell and otherwise distribute governance tokens under the name WLFI."
Earlier, CoinDesk reported that World Liberty Financial will be built on the Ethereum blockchain and Aave, a decentralized financial platform, and will be centered around a "credit account system."
The media also managed to obtain a technical document about the project, which states that 70 percent of WLFI will be owned by the founding members, team, and service providers of World Liberty Financial. But during the presentation, Kaplan said that the "fake news media" had gotten the details wrong and that 63 percent of the tokens would be sold to the public.
“Additional information about World Liberty Financial is only intended to be available to persons who have been pre-qualified by completing a KYC process,” the World Liberty Financial website says.
In a post on X, World Liberty Financial blamed "outdated policies and regulations in the United States" that limit whitelisting to accredited investors and non-U.S. citizens.
The Securities and Exchange Commission defines accredited investors as individuals with a net worth of at least USD 1 million, excluding the value of their primary residence. They must have an annual income of at least USD 200,000 individually or USD 300,000 together with their spouse or partner in the last two years.
As of 2022, the SEC estimates that there were 24 million accredited investors in the United States. That's almost 20 percent of the U.S. population, which is partly due to recent inflation. But this is still far from the "underserved communities" that Trump says World Liberty Financial is supposed to help.