U.S. Department of State Announces CRADA Pilot Test Agreement with The Reserve Financial, LLC to Establish The Reserve Bank and Launch Coin

FOR IMMEDIATE RELEASE

Washington, D.C. — December 18, 2025 — The U.S. Department of State (DoS) today announced a Cooperative Research and Development Agreement (CRADA) with The Reserve Financial, LLC, marking the first step in standing up The Reserve Bank and its flagship cryptocurrency, Coin. This pilot initiative is designed to evaluate how digital asset infrastructure can operate within existing U.S. financial and compliance frameworks, emphasizing transparency, auditability, and regulatory alignment.

“This pilot represents an important opportunity to explore how emerging financial technologies can support U.S. policy objectives while ensuring compliance, security, and oversight,” said a spokesperson for the Department of State. “Our goal is to provide a controlled environment for testing these systems, fostering innovation that aligns with national priorities and regulatory standards.”

CRADA Structure and Non-Monetary Support

The pilot test agreement is structured as a CRADA and is executed through an affiliated subsidiary of The Reserve Financial, LLC that maintains the required federal registration. Under this arrangement, the government does not provide funding but contributes technical expertise, advisory support, and non-monetary resources to facilitate evaluation of digital asset infrastructure.

Alignment with Federal Policy and Legislative Frameworks

The pilot is conducted within the context of Executive Order 14178 — Strengthening American Leadership in Digital Financial Technology, which directs federal agencies to evaluate and recommend regulatory frameworks for digital assets, affirms U.S. leadership in blockchain and financial technologies, and consolidates interagency coordination in this space.

Additionally, the initiative aligns with the CLARITY Act of 2025 (H.R. 3633), anticipated to receive bipartisan support, which defines digital asset categories, clarifies regulatory jurisdiction, and enhances investor protections. These legislative and executive frameworks provide a foundation for secure, auditable, and responsible digital asset innovation.

Compliance-First Design Philosophy

The Reserve Bank pilot is structured around regulatory alignment from inception. Key focus areas include:

• Transaction auditability and immutable recordkeeping

• Clear asset classification, including native coins and tokenized instruments

• Structured compliance controls consistent with U.S. financial laws

• Operational transparency for institutional review

The Reserve Bank will operate as a research and validation environment to inform future policy, supervisory tools, and enterprise-grade implementations.

Regulatory Filings and Oversight

• The Reserve Financial, LLC has submitted a pending Regulation D filing with the U.S. Securities and Exchange Commission for Coin.

• The Reserve Bank, LLC is pursuing operational authorization through the Office of the Comptroller of the Currency (OCC) pathway.

Under these provisional filings, engagement with the Federal Deposit Insurance Corporation (FDIC) is appropriate to ensure compliance, oversight, and alignment with emerging federal guidance.

Interagency and Defense Engagement

The pilot will include exploratory collaboration with federal stakeholders:

• Department of State: Advisory engagement and pilot programs supporting grants, aid programs, and cross-border compliance initiatives.

• Air Force / Defense stakeholders: Alignment with digital modernization strategies to evaluate standards for secure auditability and compliance in logistics and financial reporting environments.

These engagements are intended to ensure interoperability, alignment with national priorities, and development of best practices for institutional-grade digital asset infrastructure.

Forward Outlook

Over the coming months, the Department of State and The Reserve Financial, LLC will release findings and technical briefings from the pilot test environment. These insights are intended to inform policymakers, regulators, and industry stakeholders about the future role of digital asset infrastructure in secure, compliant financial systems.

About the U.S. Department of State

The U.S. Department of State advances American interests abroad, including fostering innovation, financial security, and responsible technology adoption in alignment with national policy objectives.