Citi: U.S. Crypto Reserve Gaining Traction, but Uncertainties Remain

A U.S. strategic crypto reserve is looking increasingly feasible after President Trump’s weekend announcement, according to a research note from Citi (C) on Monday.

Trump disclosed that XRP, Solana (SOL), and Cardano (ADA) would be included in the reserve, later expanding the list to include Bitcoin (BTC) and Ethereum (ETH).

“If the U.S. government moves forward with holding digital assets as a strategic reserve, it could provide a major boost to the asset class’s credibility,” wrote Citi analyst Alex Saunders.

Citi pointed out that while the U.S. government currently holds $19 billion in seized crypto assets, mostly in Bitcoin, its gold reserves total $750 billion. Since most government-controlled digital assets stem from confiscations, accumulating other tokens like SOL, XRP, or ADA would likely involve buying on the open market.

However, many aspects of the plan remain unclear, particularly the methodology for selecting assets. Citi also noted that pre-announcing purchases could drive up asset prices, potentially making acquisitions more expensive—a mistake seen in the U.K.’s gold sales of the late 1990s.

Meanwhile, Bernstein recently suggested that the Federal Reserve might consider issuing debt or selling portions of its gold holdings to fund potential crypto acquisitions.