Updated Mar 3, 2025 15:45 UTC Published Mar 3, 2025 1:17 UTC
The idea of creating a strategic cryptocurrency reserve in the United States has become more likely following statements by President Trump over the weekend, according to a research report from Citi (C) published on Monday.
The president said that XRP, Solana (SOL), and Cardano (ADA) would be included in the strategic reserve, with Bitcoin (BTC) and Ethereum (ETH) to be added to the list later.
Analyst Alex Saunders points out: “The announcement of the US government’s plans to become a potential strategic holder of digital assets will increase the perceived legitimacy” of the asset class.
Citi noted that the US government currently holds about $19 billion in cryptocurrencies, mostly Bitcoin, compared to $750 billion in gold.
The report found that the vast majority of government assets seized were in bitcoin, implying that accumulation of other digital assets will likely come from the open market.
However, “the selection criteria remain uncertain at this time” and an early announcement of such investments could negatively impact prices for investors, the bank said, adding that a similar situation occurred with the UK government regarding gold in the late 1990s.
The bank believes that more clarity on the criteria for selecting tokens for the reserve would provide additional support.
A report from broker Bernstein last month suggested that the Federal Reserve could issue bonds or sell some of its gold reserves to fund cryptocurrency purchases.
Read More: US Cryptocurrency Task Force to Focus on Creating National Bitcoin Reserve: Bernstein
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