- The U.S. Strategic Bitcoin Reserve boosts global government interest in cryptocurrency adoption.
- Deutsche Bank sees Bitcoin as a “hard reserve asset” with strong diversification potential.
President Donald Trump’s creation of the U.S. Strategic Bitcoin [BTC] Reserve has marked a pivotal shift in government involvement in digital assets.
This move has not only reinforced Bitcoin’s role in the financial landscape but has also pushed governments worldwide to deepen their participation in the cryptocurrency sector.
The advantage of Trump’s Strategic Bitcoin Reserve
Notably, Coinbase CEO Brian Armstrong highlighted a surge in institutional interest, with an increasing number of government entities exploring trading, custody, and blockchain applications.
He said,
“In the wake of the U.S. Strategic Bitcoin Reserve launching, we’re seeing many more take an interest.”
He added,
“Across federal, state, and local, Coinbase now works with 145 government entities in the U.S. and 29 government entities outside the U.S.”
Seeing this rise in crypto adoption, Coinbase is seizing this moment, positioning itself as a go-to platform for public-sector engagement in digital assets.
This also marks a key shift from the Biden era when Coinbase was struggling in a legal battle with the SEC.
Deutsche Bank joins the trail
Additionally, Deutsche Bank has also underscored the potential economic advantages of the Bitcoin Reserve, emphasizing its role in shaping global financial standards.
The bank likens Bitcoin to gold, citing its scarcity and decentralized nature as key strengths.
Analysts also highlight Bitcoin’s resilience, noting that it has “never suffered a security breach,” making it a “hard reserve asset” with strong diversification potential.
Given its low correlation with traditional assets, Deutsche Bank suggests Bitcoin could enhance the stability of U.S. financial reserves while reinforcing its position in global economic leadership.
The paper noted,
“By holding Bitcoin long-term, the US aims to strengthen its leadership in the global digital economy and potentially hedge against inflation or dollar depreciation.”
Echoing similar sentiments, Franklin Templeton also highlighted that the Strategic Bitcoin Reserve is being positioned as a potential tool to “offset national debt” if Bitcoin prices continue to rise.
What’s more?
That being said, Trump’s executive order, also motivated Senator Cynthia Lummis to reintroduce the BITCOIN Act of 2025.
For context, this legislation seeks to formally integrate Bitcoin into U.S. financial reserves, ensuring long-term stability.
Under the plan, the U.S. would acquire 200,000 BTC annually over five years, with holdings managed by the Treasury for at least two decades.
Meanwhile, market sentiment remains mixed, with Polymarket placing the likelihood of Trump creating a Bitcoin reserve in his first 100 days at 34%, while Bitcoin sees a modest recovery, trading at $83,383.96 after a 2.31% gain.
