World Liberty Financial forming token reserve to 'bolster' Bitcoin, platform's stability
Quick Take Donald Trump-backed World Liberty Financial is forming a strategic token reserve meant to “to bolster leading projects like Bitcoin, Ethereum and other cryptocurrencies that are at the forefront of reshaping global finance.” The DeFi platform’s reserve, dubbed Macro Strategy, will serve to help World Liberty Financial diversify its holdings, according to an announcement. World Liberty Financial also said it is “engaging” with financial institutions in the hopes they will contribute tokenized ass
World Liberty Financial, which counts U.S. President Donald Trump as a major supporter, is forming a strategic token reserve meant to "to bolster leading projects like Bitcoin, Ethereum and other cryptocurrencies that are at the forefront of reshaping global finance," the project said on Tuesday.
The DeFi platform's newly formed reserve, called Macro Strategy, will also serve to help World Liberty Financial diversify its holdings and mitigate risk, according to an announcement posted to X . "The Macro Strategy will serve as a robust financial backbone for WLFI," the post said.
Last week, World Liberty Financial co-founder Chase Herro teased the idea of forming a reserve. It's not completely clear from Tuesday's announcement where the funds for the reserve will originate. The project said, however, it is "engaging" with financial institutions in the hopes of finding organizations which can contribute tokenized assets to the new reserve.
"Contributed assets will be held in WLFI's publicly accessible wallet, providing institutions with transparent exposure to the crypto community," the DeFi platform said.
WLFI holds approximately $38 million in various tokens, a roughly 90% drawdown from the over $36o million it had possessed in the form of multiple assets last week after sending the majority its holdings to exchanges.
Additionally, World Liberty Financial and Ondo Finance said on Tuesday they planned to work together in order to advance the adoption of tokenized RWAs and bring traditional finance onchain, according to a blog post.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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