Stablecoin USD1 is under close scrutiny regarding the transparency of its reserves.

On October 5, questions arose about the transparency in the reserve certification of the stablecoin USD1 issued by World Liberty Financial, highlighting the company's financial ties to the Trump family. Analysts, including NYDIG, argue that these certifications do not meet industry standards.

The focus is on whether USD1 is truly backed 1:1 by U.S. Treasury bonds and cash equivalents. The involvement of the Trump family raises concerns about conflicts of interest and national security. U.S. senators had previously questioned the oversight of politically related stablecoins, suggesting the possibility of increased regulation. Nevertheless, World Liberty Financial has not yet faced official legal action, but market and government attention is growing.

Market data shows a market capitalization of USD1 2.68 billion along with recent price fluctuations and trading volume, reflecting investor uncertainty. Precedents like Tether and USD Coin demonstrate that transparency issues can trigger oversight, changes in disclosures, and strong market volatility, highlighting the importance of robust governance and reliable reserve reporting.