NYDIG has expressed concern over delays in the publication of reserve reports for the USD1 stablecoin, launched by WLFI and associated with the Trump family. According to analysts, the latest token backing report dates back to July, raising questions among investors and regulators.
Reporting Delays Alarm the Market
USD1 quickly gained popularity, increasing its issuance volume to $2.7 billion, but as the scale grows, transparency requirements become stricter. According to NYDIG’s Head of Research Greg Cipolaro, regular reports are a key element of trust in stablecoins.
‘For a project with this level of capitalization, up-to-date backing data is not optional, but a necessity,’ Cipolaro emphasized.
For comparison: Circle publishes USDC reports monthly (the latest for August), while Tether discloses data quarterly. Against competitors, WLFI’s delay appears as a deviation from market standards.
BitGo and Questions About Issuance Structure
BitGo Trust is responsible for storing USD1 reserves, but the token issuer is BitGo Technologies. It is the latter that NYDIG has questions for—the company has yet to explain why reporting stopped in the summer.
Analysts note that, in terms of distribution, most of the stablecoin circulates outside the US. Approximately 78% of the supply is concentrated in wallets linked to foreign exchanges, highlighting the international nature of the token’s circulation.
Risks for USD1 After the GENIUS Act
Additional challenges for the issuer may arise after the GENIUS Act, signed by Donald Trump earlier in 2025, comes into force. Under the new rules, stablecoin issuance will only be permitted by subsidiaries of regulated banks or state-licensed financial institutions.
Currently, BitGo does not fall under these categories, which may force the company to make structural changes. NYDIG warns that without adapting to the new regulations, the issuance of USD1 could be at risk.
Transparency as the Main Test for WLFI
Experts believe that to maintain the trust of institutional and retail investors, the WLFI project must establish regular reporting. Stablecoins with multi-billion issuance volumes are becoming systemically important instruments, and any delay in data publication is perceived as a potential risk.
So far, the WLFI team has not commented on the situation. However, the market expects the next BitGo report to clarify the situation and confirm that USD1 reserves remain fully backed.
Read more: Investors are losing interest in Solana. Will the coin stay above $230?
