The team behind USD1, the rapid growth stablecoin launched by the Defi Family World Liberty Financial Family project, has been left behind in the update of its monthly certification reports, a critical transparency measure for investors and regulators, according to NYDIG.
At the beginning of October, the most recent report is July. This delay puts the USD1 out of tune with rivals such as the USDC of Circle, which published reserve data until August, and Tether, which quarterly, Greg Cipolaro, Chief of Global Research of Nydig, said in a report.
“For a USD1 stature project, updated certifications are not negotiable,” Cipolaro wrote.
COINDESK has communicated with Bitgo and World Liberty Financial to comment, but has not had news at the time of writing.
Bitgo’s connection
While Bitgo Trust supervises the custody of Stablecoin reserves, the issuer, Bitgo Technologies, has not explained the gap in the reports. The period is remarkable given the upward profile of USD1 and $ 2.7 billion in supply, he said.
At the same time, the USD1 token distribution suggests that most of its traction is on the high seas. Nydig states that its analysis of upper wallets shows that approximately 78% of the supply is in directions linked to exchanges abroad.
Looking towards the future, the USD1 structure can conflict with the Law of incoming genius. The law, which is expected to enter into force at the beginning of 2027, limits the issuance of stable to the subsidiaries of regulated banks or entities qualified by the State.
Nydig also said that Bitgo Technologies does not currently appear in regulated banks or in the category of entities qualified by the State, which means that structural changes may be required, Cipolar wrote.
