Cryptocurrencies soared on Sunday as President Trump named five digital tokens set to form part of a United States “crypto reserve”.
In a surprise announcement, Trump revealed that XRP, cardano (ADA), solana (SOL), bitcoin (BTC) and ethereum (ETH) will comprise the government-backed reserve in a move aimed at bolstering the status of digital assets.
Values of XRP, SOL and ADA initially soared, with XRP jumping from $2.23 to $2.99—adding $44 billion to its market value—and solana gaining 20 per cent in minutes. The second wave of buying was sparked by Trump’s later disclosure that bitcoin and ethereum would also be included; BTC jumped 9 per cent to approach $93,000. While the president touted the strategic reserve’s goal of making the US the “crypto capital of the world”, questions remain about how it will function and whether investor losses might be protected by federal guarantees.
Trump’s administration has simultaneously shelved plans for a government-backed “digital dollar” via the Federal Reserve, opting instead to focus on private stablecoins. This policy shift forms part of a wider Republican agenda to provide stronger support for the crypto industry, which has struggled through high-profile collapses and increased volatility in recent years.
Despite the announcement, broader markets were unsettled by new tariffs on goods from Canada and Mexico due to come into force this week. Commerce secretary Howard Lutnick did not confirm if the levies would reach 25 per cent as initially promised, though he emphasised that the measures are being taken in response to concerns over migrant flows and alleged drug trafficking.
With a fresh “crypto roundtable summit” scheduled at the White House, industry insiders are optimistic about long-term growth—though the administration’s trade disputes and stances on regulation could spark continued unpredictability in global financial markets.
Read more:
Cryptocurrencies surge as Trump unveils us ‘crypto reserve’
