NYDIG has raised concerns about the transparency of the USD1 stablecoin, which is linked to the Trump family. Recent scrutiny has been applied due to outdated and incomplete attestation reports.
The lack of up-to-date financial disclosures for USD1 stablecoin, primarily managed by BitGo Trust and BitGo Technologies, is causing unrest among institutional investors. NYDIG insists on more transparency to maintain market confidence.
July 2025: USD1's Last Attestation Sparks Concern
World Liberty Financial's USD1, linked to the Trump family, is scrutinized for outdated and incomplete attestation reports. The last report dates back to July 2025, raising transparency concerns among institutional investors like NYDIG.
The stablecoin's custodial and issuance management by BitGo Trust and BitGo Technologies is under question for delayed reporting. They have made no public statements regarding the lapse, leaving the financial community seeking clarity.
Offshore Holdings in USD1 Despite Transparency Issues
NYDIG's Greg Cipolaro emphasizes the necessity for updated attestations, especially for a project of USD1's stature. The stablecoin has a $2.7 billion supply mostly held offshore, reflecting international reliance unaffected by current market turbulence.
The GENIUS Act's potential regulatory impact on stablecoin issuance adds pressure for transparency. Historical parallels with Tether (USDT) and USDC suggest increased scrutiny if lapses continue, possibly leading to short-term volatility but long-term market corrections.
Past Issues: Tether and USDC Inform Current Scrutiny
Past stablecoin issues with Tether and USDC focused on reserve transparency, leading to market volatility and regulatory adjustments. These parallels highlight the need for routine attestations in maintaining investor confidence and market stability.
Experts suggest that without a regulatory framework addressing these lapses, similar transparency‑related market disruptions may arise. Future compliance with acts like the GENIUS Act could stabilize the structure of stablecoin offerings, decreasing the occurrence of such issues.
Greg Cipolaro, Global Head of Research, NYDIG, - "For a project of USD1’s stature, up-to-date attestations are non‑negotiable."