7-3-2025 – In a novel approach to establishing America’s newly minted Strategic Bitcoin Reserve (SBR), Standard Chartered’s Geoff Kendrick has proposed that the United States could adopt a fiscally responsible strategy by converting a portion of its substantial gold holdings into Bitcoin.
“In theory, selling gold to buy Bitcoin could constitute a budget-neutral approach,” Kendrick outlined in correspondence, noting the considerable $760 billion valuation of America’s gold reserves.
The proposal follows President Trump’s landmark executive order that formally inaugurated both the Strategic Bitcoin Reserve and a Digital Asset Stockpile, representing a watershed moment in governmental digital asset policy. Crucially, the directive specifies that future Bitcoin acquisitions must not burden American taxpayers, requiring budget-neutral implementation strategies.
Under the executive order’s provisions, all Bitcoin currently in federal possession will be transferred to the new strategic reserve, with explicit instructions prohibiting any subsequent sale of these assets.
Kendrick expanded on potential funding mechanisms, highlighting the possibility of repurposing the Exchange Stabilization Fund, which currently holds $39 billion in net assets. Whilst acknowledging this would mark a significant deviation from the fund’s traditional role in providing financial stability during economic turbulence, he presented it as a viable option.
The banking expert also referenced Senator Cynthia Lummis’s Bitcoin Act 2024, which proposes a structured acquisition of 200,000 Bitcoin annually over five years. With proper structuring, Kendrick suggests this legislation “could be passed and worked into a budget-neutral way.”
Despite these proposals, Kendrick expressed scepticism about immediate implementation of any funding strategy. He emphasised the pivotal role Treasury Secretary Scott Bessent will play in developing and executing acquisition plans, stating, “In reality, I cannot see any of these three solutions being delivered today. Rather, they would all require Treasury Secretary Bessent to propose something.”
Further elaboration on the Strategic Bitcoin Reserve is anticipated during President Trump’s address at the White House Digital Assets Summit. The initiative may also catalyse broader institutional investment, with Kendrick suggesting that American states and pension funds might follow the federal government’s lead into Bitcoin investment.
Perhaps most significantly, Kendrick highlighted the potential global ripple effect of America’s Bitcoin reserve strategy. “I have written previously about how a U.S. strategic reserve, whatever it looks like, can embolden other sovereigns,” he noted, pointing to Abu Dhabi’s existing 4,700 Bitcoin equivalent holdings. “Other sovereigns will now surely join the buying.”
