Token of victory originally that hurt reigning monarch (7)
I believe the answer is:
voucher
'token' is the definition.
(I've seen this before)
'victory originally that hurt reigning monarch' is the wordplay.
'originally' suggests taking the first letters.
'that hurt' becomes 'ouch' (I've seen this before).
'reigning monarch' becomes 'er'.
The initial letter of 'victory' is 'v'.
'v'+'ouch'+'er'='VOUCHER'
'of' is the link.
(Other definitions for voucher that I've seen before include "Document that serves as evidence of some expenditure" , "Paper token" , "Coupon; receipt" , "Ticket" , "Something that can be exchanged for goods or services" .)