World Liberty Financial, tied to Donald Trump’s brand, is set to launch a strategic crypto token reserve.
The firm also revealed intentions to launch its own layer-1 blockchain.
Key figures with close political ties—including Trump Jr. and other well-known Trump affiliates—are prominently involved.
This move comes amid broader discussions on digital asset regulation and the feasibility of strategic reserves in the crypto market.
U.S. President Donald Trump’s crypto project, World Liberty Financial (WLF), plans to create a strategic reserve of tokens it purchases, WLF co-founder Chase Herro told audiences at Ondo Finance’s February 6 summit in New York.
World Liberty Financial Co-Founders Talk At Ondo Finance Summit
According to Bloomberg, Herro, WLF co-founders Zak Folkman and Witkoff Capital president Zach Witkoff were all introduced by Donald Trump Jr. as they spearheaded a panel on Thursday held at Jazz at Lincoln Center.
President Donald Trump’s DeFi project, World Liberty Financial, plans on creating a “strategic reserve” with tokens bought https://t.co/zH6O3bMuKu
Earlier on Thursday, reports emerged that a wallet belonging to WLF had purchased 342,000 ONDO tokens for $470,000 USDC.
While no specific details surrounding the crypto reserve were revealed, the tokenized real-world asset platform also announced plans to introduce its own layer-1 blockchain at the summit.
“Financial markets are overdue for an upgrade,” CEO Nathan Allman said in a statement. “We’re creating an ecosystem that bridges the best of traditional finance with blockchain technology.”
Witkoff, who is the son of Trump’s special envoy to the Middle East Steve Witkoff, seemingly has a close affiliation with the Trump family, going so far as to name his newborn son Donald after the newly-elected president.
Donald Trump’s Expanding Crypto Empire
Trump, who widely campaigned on enacting fair digital asset regulations, helped to launch World Liberty Financial late last year.
Donald Trump Jr. and Eric Trump are listed as the crypto organization’s “Web3 ambassadors,” while Barron Trump is credited as the brand’s “DeFi visionary.”
The crypto collective has been at the heart of legal scrutiny in the past, with allegations of potential insider trading regarding certain token purchases – though this has not been confirmed.
Trump has long pushed the concept of a strategic Bitcoin reserve amid his growing connection to the digital asset sector.
Last month, Trump signed an executive order mandating the creation of a crypto working group aimed at evaluating U.S. digital asset policy on the heels of launching his own meme coin, aptly titled TRUMP.
Just this week, newly-selected crypto czar “David Sacks” told attendees of a Washington D.C. press conference that assessing the viability of a strategic Bitcoin reserve was of top priority following completed formation of the crypto working group.
Bitcoin’s value has stagnated in recent weeks after it experienced a post-election rally that saw it cross the psychologically important $100,000 mark.
Though the future of crypto reserves in the U.S. digital asset sector (and beyond) remains uncertain, upcoming policy developments may prompt new perspectives and strategies for how governments and institutions adopt digital assets—potentially shaping the broader financial environment in the coming years.
Frequently Asked Questions (FAQs): A Deeper Exploration
1. What exactly is a strategic crypto reserve, and how might it operate? A strategic crypto reserve is envisioned as a stockpile of digital assets—similar in concept to a nation’s gold or petroleum reserves—that could be deployed during financial disruptions or used to hedge against inflation. Unlike traditional assets, cryptocurrencies require specialized custody solutions and risk-management strategies due to their inherent volatility and digital nature. This approach would likely involve secure, blockchain-based vaults and a diversified mix of tokens to mitigate risk.
2. What potential benefits could such a reserve offer to the U.S. financial system? Proponents argue that a well-managed crypto reserve could diversify national reserves and serve as a hedge against fiat currency devaluation and inflation. By holding a portfolio of digital assets, the government might gain additional flexibility in monetary policy and even leverage the reserve to address national debt issues. An official reserve could also signal regulatory and institutional support for the digital asset ecosystem, potentially spurring innovation and attracting global investment.
3. What are the main risks and challenges associated with establishing a strategic crypto reserve? The risks include extreme price volatility, challenges in secure custody and auditability, and potential market disruption if large-scale sales occur. There is also the risk of politicization and conflicts of interest—especially given the involvement of politically connected figures—which could undermine the reserve’s credibility. Also, without a clear regulatory framework, issues such as liquidity management and transparency remain serious concerns.
4. What are the implications of the Trump family’s involvement for the governance and perception of this initiative? The active participation of high-profile figures like Donald Trump Jr. and other family members lends political weight and media attention to the project, potentially accelerating its adoption and influence. However, it also raises concerns about transparency, potential conflicts of interest, and the risk that political considerations might overshadow prudent financial management. Critics warn that such politicization could lead to regulatory favoritism or abuse, undermining investor confidence and the integrity of the national reserve system.
This articles is written by : Nermeen Nabil Khear Abdelmalak
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By Nermeen Nabil Khear 