Banking Giant Citi Presents Report Following Trump's Cryptocurrency Reserve Plan! - Coin Bulletin

Citi expressed that the US government's acquisition of cryptocurrencies could strengthen the legitimacy of digital assets.

Following the announcement made by President Donald Trump over the weekend, the possibility of the US forming a strategic crypto reserve has strengthened. Wall Street bank Citi noted that this move by the government could enhance the legitimacy of cryptocurrencies.

After announcing that Trump will include XRP, Solana (SOL), and Cardano (ADA) in the strategic reserve, he also added Bitcoin (BTC) and Ethereum (ETH) to the list. According to Citi's research report, this move increased the likelihood of the US government becoming a strategic investor in digital assets. Analyst Alex Saunders noted that holding these assets by the government would increase confidence in the sector.

According to the report, the US government currently holds approximately 19 billion dollars worth of cryptocurrency. While the majority of these assets consist of Bitcoin, it was emphasized that compared to the US $750 billion gold reserves, the current crypto assets are mostly made up of Bitcoins seized through various operations, suggesting that if the government were to expand its reserves, it would need to make open market purchases.

However, Citi emphasized that clear criteria for the selection of cryptocurrencies have not yet been determined and that such pre-announcements could cause price movements against investors. A similar situation occurred during the gold sales of the UK in the 1990s, and market prices were adversely affected by this situation.

On the other hand, investment bank Bernstein stated in a report published last month that the Federal Reserve, could issue debt to finance the purchase of cryptocurrencies or sell some of its gold reserves. This scenario indicates that the US government is increasingly valuing digital assets and may shape its financial strategies accordingly.