President Donald Trump enacted an executive directive on Thursday, instructing federal agencies to launch a U.S. strategic bitcoin repository and a complementary repository for other digital currencies, solely funded by assets seized in civil or criminal cases.
Trump Signs Order Establishing ‘Digital Fort Knox’ Bitcoin Reserve Funded by Seized Assets
This article was published more than a year ago. Some information may no longer be current.
WRITTEN BY
SHARE
Trump’s ‘Digital Fort Knox’ Unveiled
The order mandates the creation of a Bitcoin Strategic Reserve to store cryptocurrency acquired through government seizures. A secondary repository will maintain non- BTC digital assets.
Assets in both repositories will originate from legal forfeitures, including those reclaimed by federal authorities. The bitcoin reserve will function as a long-term investment, described by officials as a “digital Fort Knox” to safeguard its financial value.
BREAKING: 🇺🇸 President Trump has signed an executive order formally establishing a Bitcoin Strategic Reserve. pic.twitter.com/qP0xuBVxnQ
— Bitcoin.com News (@BTCTN) March 7, 2025
David Sacks, Trump’s digital currency advisor, clarified that the reserve would be capitalized with bitcoin held by the federal government from forfeiture actions. He emphasized it would be funded entirely through seized assets, incurring no taxpayer costs. The reserve is projected to hold approximately 198,109 BTC pending a federally mandated audit.
Authorities are authorized to acquire additional bitcoin via fiscally neutral strategies, while the secondary repository—limited to non- bitcoin assets from seizures—focuses on prudent Treasury management.
Sacks highlighted that the directive honors Trump’s commitment to advancing U.S. crypto leadership and extended gratitude to Treasury’s Scott Bessent, Commerce’s Howard Lutnick, and Bo Hines for their contributions. Administration officials have not disclosed specific timelines or numerical targets for the initiative.
This initiative marks the federal government’s first systematic effort to consolidate and manage confiscated cryptocurrencies. Analysts anticipate further guidelines on custodial protocols and regulatory frameworks in the coming weeks.
