NYDIG: World Liberty Financial's USD1 Stablecoin Reports Delayed

Dünya Liberty Financial's USD1 Stablecoin Reports Delayed

NYDIG has reported that Dünya Liberty Financial has stopped updating the monthly compliance reports for the USD1 stablecoin. As of September, the latest report available is from July.

This delay is notable given the increasing popularity of USD1 and its 2.7 billion dollars supply. This situation, which may cause concern for investors, creates a significant disadvantage when compared to competitors such as Circle’s USDC, which shares reserve data up until August, while Tether provides a report every three months.

NYDIG's Global Research Director Greg Cipolaro stated, "Current reports are essential for the positioning of USD1." CoinDesk requested comments from BitGo and Dünya Liberty Financial, but no response has been received by the time of writing.

Regarding BitGo, BitGo Trust, which manages the reserves of the stablecoin, has not explained the deficiencies in the reports. This delay is particularly striking considering USD1's increasing value and its 2.7 billion dollars supply. Additionally, the distribution of USD1 tokens indicates that a majority of its source is offshore. NYDIG noted in its analysis of the largest wallets that approximately 78% of the supply is held in addresses linked to foreign exchange accounts.

It is suggested that the structure of USD1 may conflict with the upcoming GENIUS Act. This legislation, expected to take effect by 2027, will restrict stablecoin issuance to regulated banks or subsidiaries of state-chartered institutions. At this point, it is mentioned that BitGo Technologies does not appear to be suitable within these categories, indicating that structural changes may be necessary.