- Trump team chooses WBTC for decentralized control, avoiding third-party risks.
- WLFI’s $178M investment highlights a strong commitment to digital asset growth.
- TRON’s $30M investment boosts WLFI’s position as a major crypto player.
In a strategic move that highlights a deep commitment to blockchain security, the Trump team has opted for Wrapped Bitcoin (WBTC) as their Bitcoin reserve instead of relying on platforms like Coinbase or CBBTC. This decision is rooted in a fundamental principle of cryptocurrency: “not your keys, not your coins.”
By choosing WBTC, they are emphasizing the importance of control over their assets, avoiding the risks associated with third-party custodianships that could freeze or seize their funds. This move underscores a broader shift towards decentralized finance (DeFi) and secure blockchain infrastructure at the highest levels of government.
Why WBTC Over Coinbase or CBBTC?
Relying on Coinbase’s Proof of Reserves (PoR) system would mean placing trust in a centralized entity. Although PoR aims to provide transparency, it still involves third-party risks. A major concern with Coinbase’s system is that it leaves funds vulnerable to freezing or confiscation, subject to the whims of company executives.
The recent move by Paul Grewal, Coinbase’s Chief Legal Officer, to seize funds highlights this issue. If Coinbase executives disapprove of an account, the consequences could be severe. This uncertainty is a significant concern, especially for high-profile individuals or institutions like the Trump team.
On the other hand, CBBTC, a token tied to the centralized exchanges, could not offer the necessary security and autonomy either. By opting for WBTC, the Trump team has ensured that their Bitcoin is stored securely in a decentralized manner, directly controlled by them.
WLFI’s Aggressive Push into Digital Assets
World Liberty Financial (WLFI), a crypto project connected to the Trump family, has been making waves in the digital asset space. Over the past three days, WLFI invested $178.2 million across several key tokens, including Ethereum, TRON, Aave, and Chainlink. This significant investment is part of a broader strategy to position WLFI as a dominant player in the crypto market.
Notably, on January 22, WLFI spent $9.84 million to purchase 94.94 WBTC. This acquisition came after a price dip, demonstrating the fund’s strategy to buy the dip and strengthen its position.
With an average price of $106,379 per coin, WLFI’s decision to double down on WBTC signals confidence in the token’s long-term potential. Despite the slight decline in WBTC’s price, the fund remains undeterred, reinforcing its commitment to cryptocurrency as a cornerstone of future financial strategies.
The Strategic Role of TRON and Justin Sun
In a move that adds even more intrigue to the situation, WLFI has forged a strong relationship with TRON, a leading blockchain platform. Justin Sun, TRON’s founder, invested $30 million in WLFI in November 2024.
This partnership aligns with TRON’s broader mission to make the U.S. a blockchain hub, echoing Trump’s pro-blockchain stance. Sun’s endorsement further solidifies WLFI’s position as a major institutional player in the digital asset space.