Trump introduces governments to crypto diplomacy

Last week, the Pakistani government struck a deal with crypto firm SC Financial Technologies to help them launch their own stablecoin in the future. SC Financial Technologies is led by Zachary Witkoff, son of Steve Witkoff, whom Trump appointed to defend US foreign interests in the Middle East and Russia.

The stablecoin itself will be developed and rolled out by World Liberty Financial, the crypto firm led by Donald Trump Jr., Eric Trump, and Barron Trump, all sons of the current US president.

Trump is thus increasingly introducing “crypto diplomacy.”

Trump trade

In November 2024, stock markets first experienced the so-called “Trump Trade,” a practice of placing heavy bets on defense stocks, tech stocks, and crypto. This was because Trump is known to occasionally start wars, is very close to the major Silicon Valley CEOs, and his family has in the past few years become big fans of crypto.

And thus, crypto diplomacy has become commonplace for Trump.

For example, Binance founder Changpeng Zhao received a presidential pardon earlier this year after meeting with the same Zachary Witkoff in Abu Dhabi.

Justin Sun, the Chinese founder of the cryptocurrency Tron, bought $20 million worth of the crypto memecoin Trump last year. This earned him first place among the 220 buyers of the token who received a dinner invitation with Donald Trump himself.

Thanks to a partnership with Dominari Securities, a New York-based bank that advises both Donald Trump Jr. and Eric Trump, Tron is poised for an IPO in the United States this year.

European governments would do well to buy into World Liberty Financial and the Trump memecoin if they want to avoid a next trade war. Classic diplomacy is dead, and crypto diplomacy is alive and well. It’s not very nice or even logic of course, but it does work.