Trump-Linked USD1 Stablecoin Faces Scrutiny Over Delayed Attestation Reports

TLDR

• USD1’s latest attestation report is from July, raising transparency concerns.
• 78% of USD1’s supply is held in offshore addresses linked to exchanges.
• USD1 may face challenges with the upcoming GENIUS Act’s stablecoin rules.
• BitGo’s delay in reporting raises questions about USD1’s reserve management.

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The stablecoin USD1, launched by World Liberty Financial, a project with ties to the Trump family, is facing scrutiny over delays in its attestation reports. According to NYDIG, the reports, which are essential for transparency with investors and regulators, are outdated, with the latest report dating back to July. This has raised concerns about the project’s alignment with industry standards, as rivals such as USDC and Tether have maintained more up-to-date reporting schedules.

Attestation Delays Raise Concerns for USD1

The team behind USD1 has been criticized for failing to provide timely updates to its monthly attestation reports. These reports are a vital component for maintaining trust with both investors and regulatory authorities.

As of October 2025, the most recent report from USD1 was published in July, which is well behind the schedules of competitors like Circle’s USDC and Tether. USDC, for example, had its reserve data for August available by the time of this report.

Greg Cipolaro, Global Head of Research at NYDIG, emphasized the importance of up-to-date attestations for a project of USD1’s scale. “For a project of USD1’s stature, up-to-date attestations are non-negotiable,” he stated. The delay in reporting could signal issues with transparency and may prompt further scrutiny from investors and regulators in the near future.

BitGo’s Role and Custody of USD1 Reserves

BitGo, the company responsible for the custody of USD1’s reserves, has not provided a clear explanation for the delay in the stablecoin’s attestation reports. This is concerning given USD1’s rapid growth, with a total supply reaching $2.7 billion. Despite this growth, the lack of timely reporting could affect confidence in the project’s stability and future prospects. BitGo Trust oversees the storage and management of the reserves, but no official response has been received from either BitGo or World Liberty Financial regarding the issue.

While BitGo’s involvement in the custody of USD1 is crucial, the delay in regular reporting raises questions about the company’s internal processes. Transparency is considered one of the key factors for ensuring the credibility and security of stablecoins, and any gaps in this regard can undermine investor confidence.

Offshore Distribution and Regulatory Risks

Further complicating the situation is the distribution of USD1. According to NYDIG’s analysis, approximately 78% of the USD1 supply is held in addresses linked to overseas exchanges. This suggests that a large portion of the stablecoin’s usage and circulation is happening outside of the United States, which could create challenges for regulatory oversight and compliance.

This offshore distribution could also create potential issues with the upcoming GENIUS Act, which aims to regulate stablecoin issuance. The act, expected to be enacted by 2027, will limit the issuance of stablecoins to subsidiaries of regulated banks or state-qualified entities. Given that BitGo Technologies, which issues USD1, does not meet these criteria, it may need to make structural changes to align with future regulatory requirements.

Regulatory Uncertainty and Future Adjustments

As the regulatory landscape for stablecoins continues to evolve, the future of USD1 may depend on how it adapts to the incoming GENIUS Act and other regulations. The law is expected to impose stricter guidelines for stablecoin issuers, making it necessary for USD1 to meet certain criteria if it intends to continue its growth.

If USD1 does not comply with the upcoming regulations, it could face challenges in maintaining its market position. These potential changes in the regulatory framework could lead to significant adjustments for the project, especially in terms of its governance and structure. As of now, it remains to be seen how the project will address these issues and if it will be able to meet the requirements set by the GENIUS Act.

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