Justin Sun’s blockchain platform, Tron, is taking a significant step toward becoming a publicly traded firm in the United States.
According to the Financial Times, which cited two individuals with direct knowledge of the matter, Tron plans to go public through a reverse merger with Nasdaq-listed company SRM Entertainment.
Dominari Securities, a boutique investment bank affiliated with President Donald Trump’s sons, Donald Trump Jr. and Eric Trump, is reportedly arranging the deal. Notably, Eric Trump could assume a formal role in the newly formed entity, which will be named Tron Inc.
Tron Inc. to Buy and Hold TRX
The new venture will leverage MicroStrategy’s Bitcoin approach to buy and hold TRX, the native token of the Tron ecosystem. In line with this initiative, the sources disclosed that Tron will initially fund the reserve with $210 million worth of TRX.
Interestingly, this development comes nearly four months after the U.S. SEC agreed to pause its lawsuit against Sun and his companies, including the BitTorrent Foundation and the Tron Foundation.
In July 2023, the SEC charged Sun and his entities with offering unregistered securities and market manipulation. However, following a shift in the SEC’s crypto policy earlier this year, the regulator requested that a federal court pause the litigation.
Sun Strengthens Ties with Trump
With the case on hold, Sun has used the opportunity to deepen his relationship with Trump through the president’s growing crypto empire. The project reported nearly $60 million in revenue for 2024. As one of the 25 largest holders of the Official Trump meme coin, Sun attended a dinner with the U.S. President last month.
The Tron founder also invested $75 million in Trump’s DeFi project, World Liberty Financial. Interestingly, this significant investment earned him a spot on the project’s advisory team.
Meanwhile, the relationship between Sun and the Trump family appears far from over. Notably, World Liberty Financial currently holds over 40.68 million TRX, valued at $11.28 million, in its reserve.
Last week, the project added Tron to the list of supported blockchains for its dollar-pegged stablecoin, USD1. Now, Tron is set to go public in the U.S. through a reverse merger with SRM Entertainment, with Eric Trump potentially taking a formal role in the new venture.
TRX Soars Over 7%
Following the Financial Times report, TRX saw a sharp increase in price. The token surged to an intraday high of $0.29, marking a 7.36% gain from the day’s low. However, it has since retraced some of those gains and is currently trading at $0.2809, up 2.96% over the past 24 hours.
Meanwhile, SRM Entertainment announced a $100 million equity investment deal that would enable it to buy and hold TRX as a treasury asset.
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