TLDR
- USD1 stablecoin’s latest attestation report dates back to July 2025.
- 78% of USD1’s $2.7 billion supply is linked to offshore exchanges.
- NYDIG says up-to-date reports are non-negotiable for USD1’s credibility.
- USD1’s offshore structure may clash with the upcoming GENIUS Act.
World Liberty Financial’s USD1 stablecoin, a project tied to the Trump family, is facing scrutiny from NYDIG. The company has raised concerns about the stablecoin’s lack of timely attestation reports, which are essential for both regulatory compliance and investor confidence. With a growing supply of $2.7 billion, the USD1 stablecoin has become a key player in the crypto space, but its transparency issues could hurt its standing.
Delay in Attestation Reports Raises Concerns
The delay in publishing monthly attestation reports for USD1 has raised concerns within the industry. As of early October 2025, the most recent report available was from July, making it significantly outdated. According to NYDIG’s Greg Cipolaro, for a stablecoin of USD1’s size and stature, up-to-date attestations are essential for transparency and regulatory compliance.
Cipolaro emphasized that the delay puts USD1 behind its competitors, such as Circle’s USDC, which has already published data for August. The lack of timely reports can undermine investor trust and hinder the project’s ability to maintain its position in a competitive market.
“Timely attestation reports are non-negotiable for a project of USD1’s stature,” Cipolaro said in his report. The growing supply of USD1, now totaling $2.7 billion, makes these delays even more concerning for potential investors and regulatory bodies.
BitGo’s Role in Custody and the Reporting Issue
BitGo Technologies plays a crucial role in overseeing the custody of USD1’s reserves. However, it has not provided an explanation for the delay in attestation reports. BitGo Trust, which is responsible for the stablecoin’s reserve management, has not responded to inquiries regarding the issue.
NYDIG’s report points out that the delay in updates is particularly significant given USD1’s increasing profile in the market. With a supply of $2.7 billion, the stablecoin is becoming more prominent, but the lack of transparency could potentially lead to problems in maintaining investor confidence.
Despite its growing market share, concerns about USD1’s reporting practices are likely to linger until the project addresses these gaps in transparency.
Regulatory Challenges: The GENIUS Act and Offshore Holdings
USD1’s structure may face challenges under the upcoming GENIUS Act, which is expected to limit stablecoin issuance to subsidiaries of regulated banks or state-qualified entities. This could create a major issue for World Liberty Financial’s USD1 stablecoin, as the company’s current structure may not meet the requirements outlined by the new legislation.
NYDIG also raised concerns about the fact that 78% of USD1’s total supply, or $2.1 billion, is held in addresses linked to offshore exchanges. With the growing regulatory push for greater oversight and transparency in the stablecoin market, USD1’s offshore structure could be a point of contention. This could require the project to undergo significant changes to ensure compliance with future regulations.
As the GENIUS Act moves forward, USD1 will likely need to reassess its current structure to align with the regulatory environment. If it fails to do so, the stablecoin could face increased scrutiny from regulators, which may impact its operations.
The Path Forward for USD1 and World Liberty Financial
To address these concerns, USD1 will need to publish more frequent and timely attestation reports, aligning itself with industry standards. Moreover, the project will likely need to reassess its structure in light of the forthcoming GENIUS Act. World Liberty Financial may need to make adjustments to ensure that USD1 remains compliant with regulatory changes and continues to foster trust among investors.
As the market for stablecoins grows, transparency and compliance will be critical for the continued success of projects like USD1.
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