✓ Official source
World Liberty’s USD1 stablecoin shrinks by about $400 million in two weeks as big holders redeem
Summary
The supply of USD1, the dollar stablecoin issued for World Liberty Financial, fell by $385.03 million, or 8.71%, to about $4.04 billion on Ethereum, BNB Chain and Solana between the Oct. 6 and Oct. 15 closes, according to an on-chain report by research firm OnChain Benchmark.
The drop came from redemptions, not transfers to other chains: Ethereum supply fell $184.60 million across 63 burns, more than 99% routed through a wallet labeled BitGo, USD1’s issuer and custodian, and BNB Chain fell $200.43 million across 12 burns, nearly all of it from one unlabeled address in lots of $30 million to $50 million, while Solana was unchanged, the report said.
Cointelegraph, citing CoinGecko, put USD1’s market capitalization at about $4.02 billion on Monday, Oct. 19, down about $401 million or 9.1% from $4.43 billion on Oct. 6; CoinGecko data checked by SourcedBlock on Oct. 20 showed about $4.00 billion.
USD1 held its peg, trading between $0.998 and $1.000 over the period, and the report says the chain does not show who redeemed or why.
Key facts
- USD1’s Ethereum supply fell 11.45% over the nine days, versus 4.93% for USDe, 2.18% for USDC and 0.76% for circulating USDT, while PYUSD rose 2.57% and RLUSD 6.11%, according to OnChain Benchmark.
- World Liberty’s trust company won conditional approval from the Office of the Comptroller of the Currency in August and plans to take over USD1 issuance and custody from BitGo, under a type of charter a community-bank trade group has asked a federal court to rein in, the report said.
- BitGo’s latest published reserve report, for Aug. 31, counted 4.20 billion USD1 outstanding backed by $4.20 billion of cash and government money-market fund shares, according to OnChain Benchmark.
- World Liberty Financial’s proof-of-reserves dashboard showed about $4.01 billion in reserves, Cointelegraph reported.
- CoinGecko’s daily market-cap series shows USD1 at about $4.43 billion on Oct. 6 and about $4.00 billion on Oct. 20.