U.S. Crypto Reserve Gains Traction, But More Clarity Needed – Citi
The likelihood of a U.S. crypto strategic reserve has increased following President Trump’s announcement, but key details remain unclear, according to a Citi (C) research report released Monday.
Trump confirmed that XRP, Solana (SOL), and Cardano (ADA) would be part of the reserve, later expanding the list to include Bitcoin (BTC) and Ethereum (ETH).
“The possibility of the U.S. government becoming a direct holder of digital assets could significantly strengthen the market’s credibility,” wrote Citi analyst Alex Saunders.
Citi noted that the U.S. currently holds $19 billion in crypto assets, primarily Bitcoin, compared to $750 billion in gold reserves. Since most government-held crypto comes from seizures, acquiring additional assets would likely require open-market purchases.
However, Citi cautioned that uncertainty remains regarding asset selection criteria. The report warned that publicly disclosing planned acquisitions could drive up prices, potentially making purchases less efficient—similar to the U.K. gold sales in the late 1990s.
Meanwhile, a Bernstein report last month suggested that the Federal Reserve could sell gold or issue new debt to fund crypto acquisitions.
