March 3 (Reuters) – U.S. President Donald Trump has identified five cryptocurrencies that he proposes should be included in a new strategic reserve, representing digital assets owned by the U.S. government. In a recent post on Truth Social, Trump revealed that his January executive order on digital assets would establish a reserve containing XRP, SOL, and ADA. This announcement took traders by surprise as these are relatively lesser-known tokens, causing their prices to surge. Later, Trump confirmed the inclusion of Bitcoin and Ether, the two largest cryptocurrencies, in the proposed reserve.
Here is an overview of the mentioned tokens:
1. XRP
XRP, created by the U.S.-based crypto company Ripple, ranks as the third-largest cryptocurrency globally, with $140 billion worth of tokens in circulation and each valued at approximately $2.40, according to CoinGecko. Ripple promotes XRP as a solution for faster and cheaper global fund transfers compared to other cryptocurrencies like Bitcoin. Ripple has been actively involved in lobbying efforts, donating $45 million to a group aiming to influence U.S. elections in favor of the crypto industry, per OpenSecrets. The company’s CEO, Brad Garlinghouse, expressed appreciation for Trump’s vision of a government digital asset reserve.
2. SOL
SOL is the token associated with the Solana blockchain, commonly used for launching meme coins, including Trump’s own cryptocurrency introduced in January. With $73 billion worth of tokens in circulation, SOL ranks sixth among cryptocurrencies. Its value has been volatile, significantly declining in 2022 partly due to its association with former FTX CEO Sam Bankman-Fried. Despite challenges, Solana gained attention in 2021 as a rival to Ether and for its role in the NFT market. The Solana Foundation, based in Switzerland, manages the blockchain.
3. ADA
ADA operates on the Cardano blockchain, founded in 2015 by Charles Hoskinson, a prominent tech entrepreneur and Ethereum co-founder. ADA is the eighth-largest cryptocurrency, with $31.4 billion worth of tokens in circulation. Following Trump’s announcement, ADA’s price surged over 70% above its Friday level. Cardano’s operations involve multiple entities, including the Switzerland-based non-profit Cardano Foundation.
4. Bitcoin
Bitcoin, the pioneering and largest cryptocurrency, began circulating in 2009, created by the enigmatic Satoshi Nakamoto. Bitcoin facilitates direct money transfers without intermediaries like banks. Priced at around $86,000 per token, Bitcoin’s market value exceeds $1.7 trillion, accounting for more than half of the total $3 trillion digital currency market. Bitcoin’s rise was fueled by the SEC’s approval for inclusion in exchange-traded funds and expectations of pro-crypto regulation following Trump’s election.
5. Ether
Ether is the cryptocurrency of the Ethereum blockchain, a key player in decentralized finance (DeFi). Founded by Vitalik Buterin and others to compete with Bitcoin, Ether is the second-largest cryptocurrency despite trading at a fraction of Bitcoin’s price. World Liberty Financial, a crypto firm announced by Trump and his sons, has issued tokens on the Ethereum blockchain, raising over $500 million. The company unveiled a strategic token reserve to support Bitcoin, Ethereum, and other leading cryptocurrencies.
— news from Reuters