World Liberty Financial (WLFI) has launched a real-time, on-chain Proof of Reserve (PoR) system for its USD1 stablecoin, moving beyond traditional monthly attestations. The system, powered by Chainlink's decentralized oracle network and the Chainlink Runtime Environment, connects directly to custodian BitGo to provide continuous, automated verification of the stablecoin's $4.7 billion in reserves.
The initiative is a direct response to industry-wide transparency issues and follows a recent security incident. On February 23, 2026, USD1 briefly lost its $1 peg, dropping to approximately $0.994. WLFI attributed this de-pegging to a "coordinated attack" where attackers allegedly hacked several co-founder accounts, paid influencers to spread fear, and opened short positions against the protocol's native token.
The new system aims to restore confidence by allowing users to publicly audit the total supply, reserve backing, and live collateralization ratio of USD1 across five blockchains, including Ethereum, Solana, and BNB Chain. The reserves consist of short-term U.S. government treasuries and cash equivalents held at BitGo.
However, analysts note limitations. The real-time dashboard does not automatically reveal the liquidity profile of the underlying assets during a crisis and does not protect against future smart contract vulnerabilities or operational security failures. The admission of compromised executive accounts has raised concerns about the protocol's security practices.
WLFI, which maintains close ties to the family of former President Donald Trump, stated this technological integration sets a new standard for institutional security and financial integrity in the digital asset space.
