Trump-Linked Stablecoin USD1 Faces Scrutiny Over Delayed Transparency Reports and Reserve Concerns
A stablecoin associated with former U.S. President Donald Trump’s financial network is facing heightened scrutiny later than failing to release timely transparency reports.
NYDIG, a leading digital asset management firm, has warned that the , issued by World Liberty Financial, risks eroding investor trust due to delayed attestations of its reserves.
In its latest market review, NYDIG said USD1’s last reserve attestation was published in July 2025, leaving a months-long gap in verified disclosures. The firm noted that “delays of this nature are red flags in a sector where transparency defines credibility.”
USD1, which launched earlier this year as part of a digital finance initiative linked to the Trump brand, was designed to rival other major stablecoins such as USDC and Tether (USDT). However, its failure to maintain regular attestations has sparked fresh doubts about the project’s governance and reserve management.
NYDIG’s Head of Research, Greg Cipolaro, emphasized that“For a project of USD1’s stature, up-to-date attestations are non-negotiable,”warning that lapses could destabilize confidence among institutional and retail users alike.
USD1’s reserves are reportedly held by BitGo Trust, while BitGo Technologies serves as the issuer. Neither entity has addressed the delay, further fueling uncertainty.
According to on-chain data cited by NYDIG, USD1’s circulating supply has grown rapidly to nahead $2.7 billion, with over 75% of the tokens held in wallets linked to offshore platforms. This distribution pattern complicates U.S. oversight and may expose investors to jurisdictional risks.
Beyond transparency concerns, USD1 could soon face regulatory headwinds under the proposed GENIUS Act, which would require stablecoin issuers to be regulated financial institutions or state-chartered entities.
NYDIG noted that BitGo Technologies does not currently meet those criteria, suggesting that the issuer may need to restructure its operations or form new partnerships to remain compliant once the law takes effect in 2027.
More Developments for USD1
, a stablecoin offering quicker, cheaper transactions and yield returns to users.
Aptos CEO Avery Ching said at TOKEN2049 that both sides saw Aptos as the ideal network for scalable retail and banking products.
, including real estate, oil, and commodities, saying these assets “should be traded on-chain.”
USD1, fully backed by $2.68 billion in U.S. Treasuries and cash, will expand from ETH and BNB Chain to Solana and Aptos, alongside plans for a crypto debit card and token burn program.
