Trump-linked stablecoin USD1 faces reporting delays, warns NYDIG
Fintech company NYDIG, which provides an investment management platform including digital assets, has raised concerns that the USD1 stablecoin issued by World Liberty Financial is experiencing significant delays in its attestation reporting and may require restructuring under the upcoming GENIUS Act stablecoin legislation.
According to CoinDesk, citing NYDIG’s analysis, USD1 has fallen behind on its monthly attestation publications — a delay considered significant given the token’s growing popularity and its current supply of $2.7 billion. The lack of updated reporting could raise investor concerns, the firm noted.
As of early October, the most recent attestation available was from July. This lag places USD1 at a disadvantage compared to competitors such as USDC by Circle, which has published reserve data through August, and Tether (USDT), which releases quarterly reports, said Greg Cipolaro, NYDIG’s Global Head of Research.
“For a project of USD1’s scale, timely attestations are non-negotiable,” Cipolaro stated.
Regulatory uncertainty ahead
Looking forward, the structure of USD1 may conflict with the new GENIUS Act, which is expected to take effect by early 2027. The law limits the issuance of stablecoins to subsidiaries of regulated banks or state-accredited entities.
However, BitGo Technologies, which currently regulates USD1’s issuance, may not fall under either category, according to NYDIG — meaning structural changes may be required to comply with the new rules.
Furthermore, NYDIG’s analysis of on-chain data suggests that a large portion of USD1’s circulation occurs offshore. Approximately 78% of total supply appears to be held in wallets linked to overseas exchanges, indicating that most USD1 activity takes place outside U.S. jurisdiction.
As we wrote, Hut8 Corp acquires WLFI tokens at premium price
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