Donald Trump’s Crypto Firm Announces Strategic Token Reserve, Plans to Invest in DeFi

The US President Trump unveiled WLF in September 2024.

Written by Radhika Parashar, Edited by Siddharth Suvarna | Updated: 12 February 2025 19:06 IST

Donald Trump’s Crypto Firm Announces Strategic Token Reserve, Plans to Invest in DeFi

Photo Credit: World Liberty Financial

WLF will explore marketing strategies to highlight DeFi’s integration with TradFi

Highlights

US President Trump, affiliates hold 60 percent share in WLF
WLF was launched during Trump’s US Presidential campaign
The firm vouches to maintain transparency in reserve records

The US President Donald Trump-backed World Liberty Financial (WLF) has announced the launch of a strategic token reserve. has announced the launch of a strategic token reserve to navigate market volatility while maintaining a crypto-backed fund pool. The firm shared the update on its official X handle on Wednesday, February 12. President Trump, who aims to position the US as a global crypto hub, introduced WLF in September 2024. While the firm's objectives were initially unclear, its direction is now coming into focus.

“A well-capitalised reserve underscores our commitment to transparency and long-term sustainability, reinforcing confidence among our community and stakeholders. Contributed assets will be held in WLFI's publicly accessible wallet, providing institutions with transparent exposure to the crypto community,” the WLF said in its post on X.

Five months after its launch, the organisation has offered a glimpse into its plans to bridge the gap between traditional finance (TradFi) and decentralised finance (DeFi). While TradFi includes banks and financial brokers operating under central bank regulations, DeFi enables individuals to access financial services without intermediaries.

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Looking ahead, the firm announced that it will allocate funding from its reserves to support promising DeFi projects. Core components of the DeFi ecosystem include decentralised exchanges (DEXs), smart contracts, decentralised applications (dApps), Web3 wallets, liquidity pools, lending protocols, and stablecoins.

Elaborating on its roadmap, the WLF noted, “in alignment with our mission to bridge traditional finance and decentralised finance, we are actively engaging with esteemed financial institutions to contribute tokenised assets to our reserve.”

Through these collaborations, WLF aims to explore innovative marketing strategies that align with the evolving global financial landscape, integrating elements of both TradFi and DeFi.

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In the coming days, WLF will publish its ‘Macro Strategy' on its governance forum, allowing the crypto community to review and provide feedback. While details of the strategy remain undisclosed, the firm has invited individuals and companies aligned with its vision to connect after reviewing the document once it is released.

The WLF was launched during Donald Trump's election campaign last year. As per the company's website, President Trump and his affiliates own approximately 60 percent of the equity interests in WLF Holdco LLC. and are entitled to 75 percent of the revenues.

US President Trump's sons Eric and Donald Jr have been promoting the project promising it will "transform" the world of digital asset finance.

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Further reading: Cryptocurrency, World Liberty Financial, WLF, DeFi, TradFi

Radhika Parashar

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Radhika Parashar is a senior correspondent for Gadgets 360. She has been reporting on tech and telecom for the last three years now and will be focussing on writing about all things crypto. Besides this, she is a major sitcom nerd and often replies in Chandler Bing and Michael Scott references. For tips or queries you could reach out to her at RadhikaP@ndtv.com. More