Latest news with #BitcoinReserve
The Print
2 days ago
- Business
- The Print
IAF chief's frustration over defence procurement delays is valid. It should be a national wake-up call
Pakistan's Bitcoin Reserve and AI energy allocation, severe power shortages notwithstanding, is a shrewd geopolitical move. Partnering with Trump-affiliated World Liberty Financial shows Islamabad is leveraging crypto to gain influence with him. It's a dangerous blurring of personal business and governance. Pakistan sure knows how to play up to Trump. IAF chief's frustration over defence procurement delays is valid. It should be a national wake-up call IAF chief's frustration over persistent delays and broken promises in defence procurement should serve as a national wake-up call. A piecemeal approach to critical military acquisitions undermines operational readiness. What India needs is accountability, efficiency, and urgency. A strong and modern military isn't about seeking war—it's about deterring one.
Yahoo
3 days ago
- Business
- Yahoo
The U.S. government's new strategic reserve: Billions in seized crypto
President Donald Trump signed an executive order in March that boosted the spirits of cryptocurrency investors - and created a digital money mystery. Trump directed the treasury secretary to create two national stockpiles of crypto assets, putting digital currencies alongside gold, foreign currencies and other assets in the U.S. reserve. Subscribe to The Post Most newsletter for the most important and interesting stories from The Washington Post. The assets are to include crypto seized by federal agencies in criminal or civil proceedings. But the government has not disclosed how much bitcoin, or which other crypto coins, it holds. New data on what crypto cash the U.S. government has seized may now provide some answers. It suggests the crypto reserves will together hold more than $21 billion in cryptocurrency. Trump ordered the creation of a Strategic Bitcoin Reserve, which Trump described as 'a virtual Fort Knox for digital gold,' and a separate U.S. Digital Asset Stockpile to hold other cryptocurrencies. The stockpile will be funded with whatever crypto assets the Treasury holds other than bitcoin, leaving the stockpile's composition to be largely determined by a mixture of chance and criminal conduct. That unconventional method for selecting government financial holdings had the benefit of making the reserves cost-neutral for the taxpayer. It also provided a way to estimate what exactly might go into the two pools before results are released from an official accounting of U.S. crypto holdings that is underway. Because government seizures are disclosed in court documents, news releases and other sources, crypto-tracking firms can use those notices to monitor which digital assets the U.S. government holds. Chainalysis, a blockchain analytics firm, reviewed cryptocurrency wallets that appear to be associated with the U.S. government for The Washington Post. The company estimated how much bitcoin it holds, and the other crypto tokens in its top 20 digital holdings as of May 13, by tracking transactions involving those wallets. The United States' top 20 crypto holdings according to Chainalysis are worth about $20.9 billion as of 3 p.m. Eastern on May 28, with $20.4 billion in bitcoin and about $493 million in other digital assets. It has been scooped up from crimes such as stolen funds, scams and sales on dark net markets. Those estimates put the U.S. government's top crypto holdings at less than the approximately $25 billion worth of oil held in the U.S. Strategic Petroleum Reserve. Their value is nearly double the Fed's listing for U.S. gold holdings, although that figure uses outdated pricing and would be over $850 billion at current prices. The Treasury declined to comment on U.S. government crypto holdings. Before Trump's order established the crypto reserves, the U.S. government had not had a cohesive plan for handling its digital assets, said Eric Jardine, cybercrimes research lead at Chainalysis. It had regularly off-loaded pieces of its digital holdings through asset sales and restitution to crime victims, he said, apparently in part because crypto wasn't an asset it was considered strategic. The crypto tokens headed for the U.S. Digital Asset Stockpile according to the Chainalysis list include ethereum, the world's second-largest digital asset, and a string of other crypto tokens with punier name recognition. They include derivatives of bitcoin and ethereum that mirror those cryptocurrencies' prices, several stable coins designed to be pegged in value to the U.S. dollar, and 10 tokens tied to specific companies, including the cryptocurrency exchanges FTX, which imploded in 2022 after defrauding customers, and Binance. The 20 tokens on the list are generally those with the largest market capitalizations in the $1.3 trillion crypto industry. Trump's March 2 Truth Social post that announced his intention to establish the reserves said they would include XRP, Solana and Cardano, causing their prices to jump, but none feature in Chainalysis's estimate of the top 20 tokens held by the government. Trump's order said creating the reserves would centralize disparate government crypto caches and that 'there is a strategic advantage to being among the first nations to create a strategic bitcoin reserve.' Economists have warned that national reserves of cryptocurrency are likely to benefit only existing investors in the coins selected for inclusion, who could reap profits if the U.S. government's endorsement causes prices to increase. There is broad support for the digital reserves from the crypto industry, which Trump has embraced. Lawsuits and investigations into crypto firms by federal regulators have melted away since his return to office. Last week, the president dined with top investors of a meme coin named after him that generates profits for Trump and his family. Sergey Nazarov, co-founder of Chainlink, a crypto infrastructure company, said in an interview that the bitcoin reserve provides the industry a reputational boost, signaling the U.S. government considers crypto a safe-haven asset, like gold, currencies and government bonds. Nazarov was not aware his company's own crypto token, LINK, appears to have a good shot at landing in the Digital Asset Stockpile until The Washington Post informed him. He called the coin's potential inclusion 'a generally positive thing.' Chainalysis estimates the government holds about $1.5 million worth of the token, which has a market capitalization of over $10 billion, placing it among the top 20 crypto tokens by value. Not everyone in the crypto community favors the U.S. government anointing cryptocurrency as a strategic national asset. 'The original spirit' of crypto, Vitalik Buterin, a co-founder of ethereum, said in a March interview with The Washington Post, 'is about counterbalancing power,' including government and corporate power. Bitcoin, the first widely adopted cryptocurrency, was created during the Great Recession of 2007-2009, amid deep skepticism about traditional finance. Buterin is excited about the idea of governments embracing certain aspects of crypto technology. But the movement becoming too closely associated to 'one particular government team or even a particular corporate team,' he said, could violate crypto's original mission of decentralization and openness. Austin Campbell, a professor at New York University's business school and a principal at crypto advisory firm Zero Knowledge, sees hypocrisy in crypto enthusiasts cheering the government's strategic reserves. The bitcoin community in particular 'has historically been about freedom from sovereign interference,' he said. Campbell argues the U.S. government could put seized crypto coins - and its gold - to better use, by filling in some of the national debt or reducing spending. He would not oppose a crypto reserve, he said, if the United States were running a budget surplus. Trump's use of an executive order bypassed congressional debate on crypto reserves but state lawmakers attempting to establish similar reserves have gotten mixed results. New Hampshire and Arizona's governors this month signed bills paving the way for state crypto reserves. Other states - including Florida, Oklahoma and Wyoming - have rejected or postponed similar bills. One common concern has been that cryptocurrencies are more volatile than many conventional financial assets. A 2024 Pew Research Center report found that 17 percent of Americans have invested in, traded or used crypto. Among Americans ages 18 to 29, the figure was 29 percent. Some younger investors even consider highly speculative meme coins to be their generation's best shot at the American Dream. One challenge to consumer adoption of crypto has been the need to invent tools and services to make it easy to manage digital assets. Owning crypto depends on a private cryptographic key a few dozen characters long - making it easy to transfer funds but also to lose them or get scammed. Some crypto enthusiasts and institutions store bitcoin in special devices not connected to the internet, to stop hacks. The U.S. government has lost some of its seized crypto dating back to the takedown of the Silk Road dark net marketplace in 2013. 'The government has built better and better processes of managing crypto assets over time, but there have still been some mistakes,' Chainalysis CEO Jonathan Levin said in an interview this month. The Department of Justice announced in July 2024 that it had awarded a five-year contract to Coinbase, a leading crypto exchange, to provide crypto custody and trading services for its cryptocurrency assets. The company declined to comment further on the U.S. crypto reserves. Levins predicts there will now be 'a greater level of sophistication' applied to managing and securing the government's reserves. GRAPHIC Related Content Despite ceasefire, India and Pakistan are locked in a cultural cold war Columbia protester Mahmoud Khalil's detention ruled likely unconstitutional The D.C. plane crash took her mom and sister. She turned to her piano.
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First Post
3 days ago
- Business
- First Post
The many ironies in Pakistan launching a Strategic Bitcoin Reserve
Across major Pakistani cities, citizens endure crippling electricity outages, yet the government has allocated 2,000 MW of surplus electricity for bitcoin mining and artificial intelligence (AI) data centres. Alongside this, there are issues related to FATF, too read more Pakistan, a nation grappling with chronic energy shortages, regulatory challenges, and financial scrutiny, has made headlines with its ambitious foray into cryptocurrency. Bilal Bin Saqib, the newly appointed Special Assistant to the Prime Minister for Crypto and Blockchain, recently unveiled the nation's Strategic Bitcoin Reserve, designed to hold digital assets as a sovereign reserve. While presented as a bold step towards embracing digital finance, the move is fraught with contradictions that border on irony. STORY CONTINUES BELOW THIS AD Lights out at home, but power for Bitcoin? Across major Pakistani cities, citizens endure crippling electricity outages, often extending beyond 12 hours daily. Amid this chronic energy crisis, the government has allocated 2,000 megawatts of surplus electricity for bitcoin mining and artificial intelligence (AI) data centres. This stark inequality points to the government's misplaced priorities, as ordinary Pakistanis grapple with high electricity bills and prolonged blackouts. The roots of this paradox lie in the country's energy infrastructure. Pakistan has significantly increased its electricity generation capacity, reaching approximately 42,131 MW by March 2024. This expansion includes coal, solar, and hydroelectric power plants, many financed under the China–Pakistan Economic Corridor (CPEC) initiative. However, the transmission and distribution infrastructure has not kept pace, leading to inefficiencies and frequent power outages. Furthermore, the energy sector is burdened by a circular debt exceeding $10 billion, resulting from a cycle of unpaid bills between consumers, distribution companies, and power producers. This financial strain hampers maintenance and upgrades of the grid, exacerbating power shortages despite surplus generation. Chinese-funded projects under CPEC have added substantial capacity to Pakistan's power sector. While these projects have increased generation, they come with high capacity payments, obligating Pakistan to pay for electricity regardless of actual consumption. This arrangement contributes to elevated electricity tariffs and financial stress on the energy sector. Balancing on FATF's tightrope Further complicating matters is Pakistan's fraught relationship with the Financial Action Task Force (FATF), the global watchdog against money laundering and terrorist financing. Historically, Pakistan has frequently oscillated in and out of FATF's grey list, indicating heightened scrutiny and ongoing compliance issues. Pakistan was first placed on the FATF grey list in 2008, then removed in 2010 after demonstrating progress. However, it was re-listed in 2012, removed again in 2015, and placed back on the grey list in 2018 due to strategic deficiencies in counter-terrorist financing. In October 2022, Pakistan was removed from the FATF grey list after significant improvements in its anti-money laundering and counter-terrorist financing frameworks. STORY CONTINUES BELOW THIS AD Now, Pakistani authorities claim to be developing a 'comprehensive, FATF-compliant regulatory framework for digital assets.' One must question the practicality of this promise, given the country's shaky track record in financial transparency. Digital currencies, inherently difficult to track, may inadvertently exacerbate the nation's existing vulnerabilities in money laundering and illicit finance. A sovereign wallet—or safe haven for questionable funds? Central to Pakistan's crypto push is the establishment of a national bitcoin wallet to hold state-controlled digital assets. According to Saqib, this reserve would signify Pakistan's confidence in decentralized finance rather than speculation. Yet, skepticism abounds about the potential misuse of this wallet. The transparency challenges intrinsic to cryptocurrency provoke concerns about the national wallet possibly becoming a repository for illicit funds. Given Pakistan's existing FATF compliance struggles, critics suggest that without rigorous oversight, the strategic bitcoin reserve could unintentionally attract illicit financial activities.
Business Wire
3 days ago
- Business
- Business Wire
DDC Enterprise Expands Bitcoin Treasury with Acquisition of 79 BTC and Announces Partnership with Hex Trust for Secure Custody and Trading Execution Services
NEW YORK--(BUSINESS WIRE)-- DDC Enterprise Limited (NYSE: DDC) today announced the acquisition of 79 Bitcoin (BTC) as part of its ongoing Bitcoin accumulation strategy. This strategic purchase reinforces DDC's commitment to leveraging Bitcoin's scarcity-driven value proposition as a core component of its treasury reserve portfolio. DDC issued 580,187 class A ordinary shares in exchange for the new BTC purchase. BTC per 1,000 DDC shares increased from 0.006122 to 0.024963, up 400%. In tandem with this acquisition, DDC has entered into a partnership with Hex Trust, a globally recognized digital asset financial institution specializing in institutional-grade custody, staking, and markets services. As one of the key custodians within DDC's newly established dynamic custodian network, Hex Trust will provide institutional-grade custody and trading execution services , designed to ensure the security and scalability of the Company's rapidly growing Bitcoin holdings. Strategic Expansion and Scarcity Alignment The purchase of 79 BTC underscores DDC's conviction in Bitcoin's role as a scarce digital asset, capped at 21 million coins, and its potential to act as a long-term hedge against inflationary pressures. This purchase follows DDC's initial 21 BTC purchase on 23 May 2025, further solidifying the Company's position as a corporate adopter of Bitcoin's value proposition. Total BTC holding is 100. 'Bitcoin's immutable scarcity and decentralized architecture align perfectly with our vision for a resilient treasury strategy,' said Norma Chu, Founder, Chairwoman, and CEO of DDC. 'Our partnership with Hex Trust ensures that our growing Bitcoin portfolio is safeguarded with institutional-grade security, enabling us to scale confidently as we continue to execute on our digital asset strategy.' 'As institutions reimagine their treasury strategies, Bitcoin is increasingly being recognized as a long-term reserve asset,' said Alessio Quaglini, CEO & Co-founder, Hex Trust. 'Hex Trust provides the trusted infrastructure to enable this shift—providing secure custody, compliant trading execution under a fully regulated framework. We're proud to support DDC's forward-looking Bitcoin Reserve Strategy and to deliver secure, institutional-grade access to Bitcoin.' About Hex Trust Established in 2018, Hex Trust offers regulated institutional digital asset custody, staking, and markets services to builders, investors, and service providers. Get access to our comprehensive, secure, and regulated suite of services built on our proprietary and fully integrated infrastructure. For more information, visit or follow Hex Trust on LinkedIn, X, and Telegram.
Associated Press
3 days ago
- Business
- Associated Press
DDC Enterprise Expands Bitcoin Treasury with Acquisition of 79 BTC and Announces Partnership with Hex Trust for Secure Custody and Trading Execution Services
NEW YORK--(BUSINESS WIRE)--May 29, 2025-- DDC Enterprise Limited (NYSE: DDC) today announced the acquisition of 79 Bitcoin (BTC) as part of its ongoing Bitcoin accumulation strategy. This strategic purchase reinforces DDC's commitment to leveraging Bitcoin's scarcity-driven value proposition as a core component of its treasury reserve portfolio. DDC issued 580,187 class A ordinary shares in exchange for the new BTC purchase. BTC per 1,000 DDC shares increased from 0.006122 to 0.024963, up 400%. In tandem with this acquisition, DDC has entered into a partnership with Hex Trust, a globally recognized digital asset financial institution specializing in institutional-grade custody, staking, and markets services. As one of the key custodians within DDC's newly established dynamic custodian network, Hex Trust will provide institutional-grade custody and trading execution services , designed to ensure the security and scalability of the Company's rapidly growing Bitcoin holdings. Strategic Expansion and Scarcity Alignment The purchase of 79 BTC underscores DDC's conviction in Bitcoin's role as a scarce digital asset, capped at 21 million coins, and its potential to act as a long-term hedge against inflationary pressures. This purchase follows DDC's initial 21 BTC purchase on 23 May 2025, further solidifying the Company's position as a corporate adopter of Bitcoin's value proposition. Total BTC holding is 100. 'Bitcoin's immutable scarcity and decentralized architecture align perfectly with our vision for a resilient treasury strategy,' said Norma Chu, Founder, Chairwoman, and CEO of DDC. 'Our partnership with Hex Trust ensures that our growing Bitcoin portfolio is safeguarded with institutional-grade security, enabling us to scale confidently as we continue to execute on our digital asset strategy.' 'As institutions reimagine their treasury strategies, Bitcoin is increasingly being recognized as a long-term reserve asset,' said Alessio Quaglini, CEO & Co-founder, Hex Trust. 'Hex Trust provides the trusted infrastructure to enable this shift—providing secure custody, compliant trading execution under a fully regulated framework. We're proud to support DDC's forward-looking Bitcoin Reserve Strategy and to deliver secure, institutional-grade access to Bitcoin.' About Hex Trust Established in 2018, Hex Trust offers regulated institutional digital asset custody, staking, and markets services to builders, investors, and service providers. Get access to our comprehensive, secure, and regulated suite of services built on our proprietary and fully integrated infrastructure. For more information, visit or follow Hex Trust on LinkedIn, X, and Telegram. View source version on [email protected] KEYWORD: NEW YORK UNITED STATES NORTH AMERICA INDUSTRY KEYWORD: PROFESSIONAL SERVICES RETAIL TECHNOLOGY SUPERMARKET ASSET MANAGEMENT FOOD/BEVERAGE DIGITAL CASH MANAGEMENT/DIGITAL ASSETS SOURCE: DDC Enterprise Limited Copyright Business Wire 2025. PUB: 05/29/2025 09:05 AM/DISC: 05/29/2025 09:03 AM
