Trump-Linked Stablecoin Faces Transparency Scrutiny Over Delayed Reports, NYDIG Warns

The team behind USD1, a stablecoin launched by Trump family–linked DeFi project World Liberty Financial, has come under criticism for failing to provide timely attestation updates, a key requirement for market transparency, according to a new report by NYDIG.

As of early October, USD1’s latest attestation report dates back to July, leaving investors without verified information on reserve holdings for more than two months. NYDIG’s Global Head of Research, Greg Cipolaro, said the delay raises concerns, especially compared to competitors like Circle’s USDC, which published reserve data through August, and Tether, which continues to report quarterly.

“For a project of USD1’s stature, up-to-date attestations are non-negotiable,” Cipolaro emphasized in the report.

BitGo’s Role and Offshore Exposure

The report notes that BitGo Trust is responsible for custodying USD1’s reserves, while BitGo Technologies, the stablecoin’s issuer, has yet to explain the reporting lapse. Despite this gap, USD1’s circulation has surged to $2.7 billion, signaling rapid growth in a crowded market.

However, NYDIG’s on-chain analysis indicates that around 78% of USD1’s total supply resides in wallets tied to offshore exchanges, suggesting that most of its adoption remains outside the U.S.

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Regulatory Risks Ahead

Looking forward, NYDIG warns that USD1’s structure could face compliance challenges under the upcoming GENIUS Act, expected to take effect in early 2027. The legislation restricts stablecoin issuance to entities that are subsidiaries of regulated banks or state-qualified institutions.

Since BitGo Technologies does not currently fall into either category, structural adjustments may be required to keep USD1 in line with federal policy once the new framework is implemented.

The report underscores growing regulatory pressure on high-profile stablecoins to maintain real-time transparency, particularly those tied to politically influential figures and expanding global circulation.

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