Trump Names Cryptocurrencies for Strategic Reserve
Former U.S. President Donald Trump has announced plans to include several cryptocurrencies in a new strategic reserve, sparking interest and price fluctuations within the digital asset market. In a post on Truth Social on Sunday, Trump revealed that his January executive order on digital assets would establish a government-held stockpile of XRP, SOL, and ADA. He then subsequently added Bitcoin and Ether to the list. This announcement has created considerable buzz and sent ripples through the crypto community.
The move, which surprised many, represents a potential embrace of digital assets by a significant political figure. The inclusion of lesser-known tokens alongside established cryptocurrencies such as Bitcoin and Ether signals a broad approach to digital asset holdings.
Here’s what we know about the tokens:
XRP
Developed by the U.S. crypto firm Ripple, XRP is the world’s third-largest cryptocurrency, with $140 billion in circulation. According to CoinGecko data, the token is currently valued at around $2.40. Ripple promotes XRP as a way to facilitate global fund transfers more efficiently. The company has been involved in significant lobbying efforts within the crypto space, and the SEC had a partial victory in a legal case against Ripple.
SOL
SOL, the token of the Solana blockchain, is often used for launching meme coins, including one launched by Trump himself. It is the sixth-largest cryptocurrency, with a total value around $73 billion. Solana’s value experienced substantial volatility, notably losing much of its value in 2022 due to its association with former FTX CEO Sam Bankman-Fried. Solana’s website notes that it is managed by “Solana Foundation,” a non-profit organization based in Switzerland.
ADA
ADA operates on the Cardano blockchain, which was founded in 2015 by Charles Hoskinson, a co-founder of the Ethereum project. With $31.4 billion of ADA tokens in circulation, it ranks as the eighth-largest cryptocurrency. Following Trump’s announcement, ADA saw the most dramatic price surge, briefly jumping approximately 70% above its price before the announcement. Cardano has a non-profit foundation and a for-profit arm.
Bitcoin
Bitcoin, the first and largest cryptocurrency, emerged in 2009, created by the pseudonymous Satoshi Nakamoto. It facilitates peer-to-peer transactions, bypassing financial intermediaries. With each bitcoin valued at around $86,000 and approximately $1.7 trillion in circulation, it accounts for over half of the total digital currency market. Bitcoin’s value gained support from the SEC’s approval of exchange-traded funds in January 2024, and expectations of positive regulatory moves following Trump’s election.
Ether
Ether is the cryptocurrency of the Ethereum blockchain, which is a major player in decentralized finance (DeFi). Founded in 2013-2014 to challenge Bitcoin, it is the second-largest cryptocurrency, even though it trades at a fraction of Bitcoin’s price. World Liberty Financial, a crypto company that worked with Trump and his sons last year, has issued digital tokens on the Ethereum blockchain and has so far sold over $500 million of the tokens.
