Trump Considers US Coins For Crypto Reserve

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Good Morning.

In the past 24 hours, we’ve seen the Trump administration signaling so hard that they’ll continue to embrace crypto. For the sake of our bags, I hope that this is true. That said, I remain skeptical that anything other than BTC will actually get the level of adoption being promised — but hey, our US-based founders are trying.

In Today's Email:

• What Matters: Trump Considers US-Based Coins 🇺🇲 

• Founders Highlight: Paul of Morpho 👨 

• Deal Flow: Phantom Raises $150M 💰️ 

You read and share. We listen and improve. Send us feedback at [email protected].

WHAT MATTERS

Trump Considers ‘America-First’ Crypto Reserve

State of play: President-elect Donald Trump is reportedly receptive to creating an “America-first” crypto reserve, prioritizing US-founded assets like USDC, SOL, and XRP.

• According to the New York Post, Trump has met with the founders of these assets and is open to the idea.

• Insiders suggest this move could delegitimize Bitcoin, despite Trump previously pledging to establish a Bitcoin-focused strategic stockpile.

• Trump's broader crypto agenda includes removing SEC Chair Gary Gensler, freeing Silk Road founder Ross Ulbricht, establishing a Crypto Presidential Advisory Council, and making the US a crypto mining hub.

• Investor David Sacks has been appointed AI and Crypto Czar, signaling a major shift in Washington’s stance on the industry.

• A Crypto Ball is scheduled before Trump's inauguration on Jan. 20, with sponsorships from Coinbase, Solana, MicroStrategy, Kraken, and Galaxy Digital.

What’s next: Tokens founded by American founders, especially those who have a close tie with the Trump’s administration, such as SOL and XRP, have seen a surge in the past 24 hours.

For builders and investors: American builders are now embracing their home, a stark move compared to just a year ago when crypto builders were trying to not be associated with the US.

BUILDER-INVESTOR HIGHLIGHT

Paul Frambot of Morpho Labs

Intro: Paul Frambot is the Co-Founder and CEO of Morpho Labs, a research and development company responsible for building and growing the Morpho protocol.

Previous background: Paul co-founded Morpho Labs whilst studying towards his now-completed Master's in Parallel & Distributed Systems from the Institut Polytechnique de Paris in 2021.

• During his studies, Paul raised $18M from top investors, including a16z and Variant for Morpho.

The big idea: Paul built Morpho to support end-users, developers, and businesses, aiming to extend beyond crypto and contribute to an internet-native financial system.

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INSIGHTS

South Korea May Sanction Upbit

State of play: South Korean crypto exchange Upbit may face sanctions for allegedly failing to comply with money laundering and KYC obligations, according to a Maeil report.

• The Financial Information Analysis Institute (FIU) under the Financial Services Commission (FSC) reportedly notified Upbit of the potential penalties.

• The penalties could restrict new customer-related business for up to six months, preventing new users from transferring assets outside the exchange.

• Upbit will submit a response to the FIU by January 20, after which the agency will review the sanctions.

• South Korean regulators have intensified scrutiny of exchanges since the 2022 collapse of Terra.

DEAL FLOWS

Phantom Wallet Raises $150M at $3B Valuation

Deal flows soared this week - we saw $450M in deals 💼 

Phantom Wallet secured $150M in a Series C funding round led by Sequoia Capital and Paradigm, with participation from a16z and Variant, bringing its valuation to $3B.

• The company reported 15M MAUs and $25B in self-custody assets.

• CEO Brandon Millman highlighted a shift towards direct crypto purchases via wallets rather than centralized exchanges.

• Phantom aims to accelerate crypto adoption and become a leading consumer finance platform, crediting Solana for its dominance.

• This marks the largest crypto funding round of 2025 so far, surpassing Sygnum Bank’s recent $58M raise.

Deal flows in the past week:

• Hyve Labs, $2.75M Pre-Seed Round

• GTE, $10.49M Pre-Seed Round

• Novastro, $1.2M Seed Round

• BeraTone, $2M Seed Round

• Brickken, $2.5M Seed Round

• Nevermind, $4M Seed Round

• Oh, $4.5M Seed Round

• 1Money Network, $20M Seed Round

• Privasea, $5.25M Series A

• Dfns, $16M Series A

• Reown, $13M Series B

• Sygnum, $58M Series B

• Komainu, $75M Series B

• Phantom, $150M Series C

• DePIN DAO, $2M Strategic Round

• MilkyWay, $1M Public Token Sale

• BAD Coin, $1.25M Public Token Sale

• Litas, $20M Private Token Sale

• Mind AI, $1.2M Unknown Round

• Synthr, $10M Unknown Round

• VOOX, $50M Unknown Round

QUICK BITES

• Trump to make crypto a national priority.

• Jito Labs hires Rebecca Rettig as its first CLO.

• Nasdaq files 19b-4 form for Canary Litecoin ETF.

• Upbit exchange hit with business suspension penalty.

• Scott Bessent says he sees 'no reason' for a US CBDC.

• JPMorgan says BTC dominance is likely to continue in 2025.

• eToro confidentially files for US IPO targeting a $5B valuation.

• Oklahoma lawmakers propose a bill for the state to invest in BTC.

• Lummis calls out FDIC or alleged misconduct in digital asset oversight.

• Trump receptive to including US-based coins for America's crypto reserve.

NOTEWORTHY READS

• Cami’s read on don’t abstract my Bera.

• Kyle’s read on navigating the crypto AI landscape.

• Lucas Bruder’s read on Jito: past, present, and future.

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Disclaimer: All the information presented in this publication and its affiliates is strictly for educational purposes only. It should not be construed or taken as financial, legal, investment, or any other form of advice.