"The audit issue of Trump's Coin is worrying investors."

The stablecoin USD1, launched by World Liberty Financial linked to the Trump family, is at risk of undermining investor confidence due to outdated monthly audit reports. Kripto research firm NYDIG reported that the last audit report for USD1 was published in July as of October. This delay is creating mistrust among investors compared to competitors like Circle (USDC) and Tether.

Greg Cipolaro, NYDIG’s head of global research, emphasized the importance of up-to-date audit reports for projects of this magnitude, stating, “They are indispensable for investor expectations.” USD1’s reserves are held by BitGo Trust; however, the issuer, BitGo Technologies, has not issued a statement regarding the delay in the reports. The current market supply is around $2.7 billion, and NYDIG’s on-chain analysis shows that approximately 78% of the tokens are held in wallets associated with foreign exchanges, indicating that USD1 is primarily used in markets outside the U.S.

Even more concerning is the mention of the new GENIUS Act in the NYDIG report. Expected to come into effect in 2027, this law aims to restrict stablecoin issuance solely through regulated banks or state-approved entities. Cipolaro notes that BitGo Technologies does not fully comply with any of these categories, suggesting that structural changes may be necessary. While the popularity of USD1 is increasing, this lack of transparency and regulatory risk raises questions among investors about the long-term sustainability of the project.