Donald Trump-Backed World Liberty Financial Plans to Create "Strategic Reserve"

World Liberty Financial (WLF), a decentralized finance (DeFi) project backed by US President Donald Trump and his family, is set to create a "strategic reserve" using the tokens it purchases. 

Co-founder Chase Herro confirmed the development, as reported by Bloomberg. Herro has not disclosed specific details about its size or intended use. The initiative aligns with Trump’s previous proposals to form a digital asset stockpile, an idea that gained traction during his presidential campaign. 

Moreover, during the 2024 presidential election, Trump made headlines by proposing a national Bitcoin reserve. The current move by WLF builds on this idea but focuses on a broader selection of cryptocurrencies, including tokens like Ethereum (ETH), wrapped Bitcoin (wBTC), and others.

World Liberty Financial’s Crypto Purchases

WLF has been steadily acquiring digital tokens, signaling its intention to diversify its crypto portfolio. On Feb. 6, WLF invested $470,000 in Ondo Finance's native token, ONDO, per Onchain Lens. The platform has also purchased other major cryptocurrencies like Ethereum (ETH), Tron’s TRX, AAVE, and Chainlink’s LINK, among others.

Interestingly, while WLF has focused heavily on Ethereum and other altcoins, it does not currently hold Bitcoin. Despite Eric Trump's recent suggestion that Bitcoin would be a good entry price when it traded around $98,000, WLF has chosen to invest in other crypto assets instead, possibly reflecting shifting sentiments within the family's crypto strategy.

Herro mentioned that WLF is a "big builder fan," indicating its long-term approach to crypto investment. The company’s investments have drawn some attention, especially as it operates under the watchful eye of the Trump family, whose influence over crypto regulations is a topic of ongoing debate.

Trump’s Influence on Crypto Policy

The Trump family’s involvement in the crypto industry has sparked discussions about potential conflicts of interest. Donald Trump Jr., Eric Trump, and Barron Trump are listed as Web3 Advisors for WLF, lending further visibility to the project. This influence, combined with Trump’s administration’s recent policies on cryptocurrency regulation, could shape the future of digital asset laws in the U.S.

During the Ondo Summit on Feb. 6, Trump Jr. reiterated his belief in the importance of digital assets for the future of the U.S. economy. He emphasized that cryptocurrency could serve as a cornerstone for America’s financial dominance in the coming decades.

The Ondo Summit also featured discussions from industry leaders and government figures, including former Commodity Futures Trading Commission (CFTC) Chairman J. Christopher Giancarlo. Giancarlo noted that while the Trump administration has reversed some past policies, establishing clear and effective regulations for crypto assets will take time.

William Hinman, Senior Advisor at Andreessen Horowitz, echoed this sentiment, suggesting that although improvements are on the horizon, legislative efforts to update crypto regulations will need patience.