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World Liberty Financial, the Donald Trump-endorsed and Justin Sun-advised cryptocurrency firm, has launched a stablecoin, USD1, that has very quickly become one of the largest in the world.
However, despite this multi-billion-dollar growth, the token provides effectively no transparency; no audits, no attestations, not even a transparency webpage that purports to show its holdings.
The token is offered in partnership with BitGo, which does have a website page dedicated to the token.
However, while the page does claim that the token is “100% backed by short-term US government treasuries, US dollar deposits and other cash equivalents,” it provides no additional evidence or insight beyond that.
Read more: Every token in World Liberty Financial’s portfolio is down bad
This lack of transparency contrasts USD1 with other popular stablecoins, including tether (USDT), USDC, the Paxos stablecoins, and many others that do provide much greater insight into their reserves.
That’s despite the fact that it’s already been adopted by prominent individuals and firms, including being used by Abu Dhabi-based MGX as it acquires a stake in Binance worth $2 billion.
Data from CoinGecko suggests that USD1 has reached a total market capitalization of $2.12 billion, exceeding some older stablecoins like TrueUSD, First Digital USD, and PayPal USD.
Read more: Who is behind World Liberty Financial, Trump’s new crypto?
This growth was dominated by large mints at the very end of April that coincided with the announced MGX investment in Binance.
Protos reached out to World Liberty Financial on X with questions about its plans to disclose this information, but it didn’t immediately respond.
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