The USD1 stablecoin, associated with former U.S. President Donald Trump's financial network through World Liberty Financial, is under heightened scrutiny due to significant delays in its transparency reports. NYDIG, a leading digital asset management firm, has warned that the last reserve attestation for USD1 was published in July 2025, leaving a months-long gap in verified disclosures that risks eroding investor trust.
Greg Cipolaro, Global Head of Research at NYDIG, emphasized that "for a project of USD1's stature, up-to-date attestations are non-negotiable," highlighting that such delays are red flags in a sector where transparency defines credibility. USD1, which launched earlier in 2025 to rival major stablecoins like USDC and Tether (USDT), has seen its circulating supply grow rapidly to nearly $2.7 billion. However, over 75% of the tokens are held in wallets linked to offshore exchanges, complicating U.S. oversight and exposing investors to jurisdictional risks.
BitGo Trust oversees the custody of USD1's reserves, while BitGo Technologies serves as the issuer, but neither entity has addressed the delay, fueling uncertainty. Additionally, USD1 faces potential regulatory challenges under the proposed GENIUS Act, expected to take effect in 2027, which would require stablecoin issuers to be regulated financial institutions or state-chartered entities. BitGo Technologies does not currently meet these criteria, suggesting the issuer may need to restructure operations to remain compliant.
Despite these issues, USD1 is expanding its reach through partnerships, including with Aptos, to offer faster, cheaper transactions and yield returns, with plans to extend from Ethereum and BNB Chain to Solana and Aptos, alongside a crypto debit card and token burn program.
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