President Donald Trump has signed an executive order to create strategic Bitcoin reserves and digital assets stockpiling, marking the first major step towards integrating Bitcoin into the US financial system.
Trump’s executive order outlined plans to first use cryptocurrency confiscated in government criminal cases, Cointelegraph reported on March 7.
As one of the most widely planned moves in the Crypto industry, Strategic Bitcoin (BTC) marks the first “real step” of Bitcoin’s integration into the global financial system, according to Joe Burnett, head of market research at UNChained.
Source: Margo Martin
“The era of Bitcoin integration has begun,” the brunette told Cointelgraf.
“Now, with the establishment of Bitcoin’s strategic reserve, the US is taking its first real step towards integrating Bitcoin into the global finance structure, recognizing its role as a foundational asset in a more stable and sound financial system.”
Despite the historic executive order, Bitcoin has plummeted more than 6% since its announcement, falling from $90,400 to $84,979. Many investors expected the government to announce plans to buy additional Bitcoin, leading to short-term disappointment.
Despite the disappointment, the executive order marked a key pivot that confirmed that Bitcoin is “no longer an outsider” among global financial assets, Burnett said.
“It is now positioned as the seventh most valuable asset on the planet, along with traditional reserves, indicating a change in how governments and institutions approach financial security, inflation protection and global liquidity,” he added.
The Crypto industry will watch Trump’s upcoming White House Crypto Summit on March 7th. Details of the Bitcoin Reserve and Digital Asset Stockpiling plan are predicted here.
Related: Bitcoin struggle of nearly $90,000 as US tariffs fear Spook ETF investors
Trump’s Bitcoin Reserve may bring new financial products
The establishment of a Bitcoin Reserve could lead to the creation of new Bitcoin-backed financial products, such as lending mechanisms and alternative settlement solutions, Burnett said.
“From the reserve lending mechanism to cross-border settlements that bypass obsolete systems, look forward to seeing new financial products designed around Bitcoin.”
“What happens next defines an integrated era. Some people accept it and lead, others risk being hesitant and delayed. History remembers the difference,” he added.
Related: Trump’s WLFI tripled Ether Holdings in a week amid market recession
Crypto Space developers are already working on financial solutions through Bitcoin-based Decentralized Finance (DEFI), also known as BTCFI. This emerging sector aims to bring Defi capabilities to Bitcoin’s blockchain.
The BTCFI application reached its breakout year in 2024, half after April, and experienced a 22-fold increase due to infrastructure development and rising prices of Bitcoin.
Bitcoin TVL, 2024 chart. Source: Defilama
The total value locked on the Bitcoin Network (TVL) rose by more than 2,000% in 2024 from $307 million in January to $6.5 billion on December 31st, Defillama data shows.
The “breakout year” is largely due to growth growth regarding Babylon, a Bitcoin staking and remolding platform that controls more than 80% of BTCFI’s TVL, Binance Research told Cointelegraph.
Babylon was seen as an important opportunity for Bitcoin-based defi, thanks to the first introduction of Bitcoin native staking in crypto history.
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