World Liberty Financial saw a significant development as the company's co-founder, Chase Herro, announced plans to establish a "strategic reserve" using tokens purchased by the firm.

This move comes as the decentralized finance (DeFi) project receives notable backing from President Donald Trump and his family.

At the Ondo Summit in New York, where the president's son, Donald Trump Jr., shared the stage with Herro, World Liberty Financial made a substantial purchase of $470,000 in Ondo Finance's tokens. However, the specific purpose and the intended size of the newly announced reserve have not been disclosed by Herro.

The concept of a strategic cryptocurrency reserve is not new to the Trump administration. During the previous year's presidential campaign, President Trump advocated for the creation of a strategic bitcoin reserve, a notion that has since gained traction within his administration.

Earlier in the week, David Sacks, referred to as President Trump's "crypto czar," provided insights into the administration's supportive stance on cryptocurrency. He mentioned the ongoing evaluation of a strategic bitcoin reserve as part of the administration's pro-crypto agenda.

The current holdings of World Liberty Financial include approximately $35 million in various tokens. This figure represents a significant reduction, about 90%, from its previously substantial treasury. The company experienced this drawdown after transferring millions of dollars in tokens, including AAVE, ENA, ETH, LINK, and WBTC , on Monday.

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