Trump’s Crypto Reserve Signals a Shift for Corporate Treasurers

US President Donald Trump has announced the creation of a national Crypto Strategic Reserve, listing Bitcoin, Ethereum, XRP, Solana, and Cardano among its first holdings. The news has triggered a sharp rise in cryptocurrency prices, with Cardano jumping more than 70% and Bitcoin and Ethereum gaining over 10%.

While markets reacted immediately, the implications for corporate treasurers are more complex. The move signals a shift in how digital assets are perceived at the highest levels of government. If the US is serious about holding crypto as a strategic asset, businesses may need to reassess their stance on digital currencies.

A Growing Case for Crypto in Treasury Management

Cryptocurrencies have long been considered too volatile for corporate balance sheets. Yet, companies such as MicroStrategy, Tesla, and Block have incorporated Bitcoin into their reserves, citing its potential as a hedge against inflation and currency depreciation.

For treasurers, the decision to integrate crypto requires careful evaluation. The key considerations include:

1. Volatility and Risk Management

   • Bitcoin’s price swings remain a challenge. Companies looking to reduce exposure to fluctuations may consider stablecoins, which are pegged to fiat currencies.
   • Allocating a small percentage of reserves to crypto can provide diversification without excessive risk.

2. Regulatory and Compliance Issues

   • The regulatory landscape remains uncertain. While the EU’s Markets in Crypto-Assets (MiCA) framework imposes strict rules, the US approach is evolving, with Trump’s policy marking a departure from previous crackdowns.
   • Some firms use jurisdictional arbitrage, holding digital assets in countries with more favourable regulations.

3. Liquidity and Accessibility

   • Cryptocurrencies require specialist custody solutions. Firms such as Fidelity Digital Assets offer institutional-grade services, but treasurers must weigh the operational complexity.
   • The introduction of Bitcoin ETFs has made it easier to gain exposure to crypto without holding the asset directly.

A Diversified Approach to Treasury Strategy

Businesses exploring digital assets often structure their treasury allocations in three layers:

• Cash Reserves for operational liquidity.
• Bitcoin and Other Cryptocurrencies as an inflation hedge.
• Stablecoins to facilitate cross-border payments while maintaining price stability.

This strategy is gaining traction in high-inflation economies. Argentina’s Belo, for instance, holds up to 30% of its reserves in Bitcoin to counteract local currency depreciation.

A Shift in Financial Policy

The announcement of a US crypto reserve is not just a political statement. If the government holds digital assets in significant quantities, it could help stabilise crypto markets and influence global regulation. This development raises questions for corporate treasurers: is cryptocurrency now a mainstream financial asset, or does the underlying volatility still make it unsuitable for most firms?

For now, treasurers will be watching how the policy unfolds. The broader adoption of digital assets in corporate finance may still be some way off, but the landscape is changing.