USD1

What is USD1?

USD1 is a US dollar stablecoin launched in March 2025 under the World Liberty Financial brand, a crypto venture associated with the Trump family. The tokens are issued and redeemed by BitGo Bank & Trust, N.A., a federally chartered trust bank, and are backed by Treasury bills, government money market funds and cash equivalents.

What it’s used for

USD1 is used mainly as a trading and settlement dollar on exchanges and in DeFi. Its best-known large use was in 2025, when Abu Dhabi investment firm MGX used USD1 to complete a $2 billion investment in Binance.

Role of the USD1 token:

Evidence of real use

• BitGo Bank & Trust, N.A. issues and redeems USD1, and Crowe LLP examined its reserve report as of May 31, 2026. Source
• World Liberty Financial unveiled USD1 in March 2025, and it was chosen for MGX's $2 billion investment in Binance. Source
• World Liberty Financial says USD1 is backed by Treasuries, government money market funds and cash equivalents, with monthly attestation reports. Source

How USD1 works

USD1 has two main players. World Liberty Financial owns the brand and promotes the token, while BitGo, a long-running digital-asset custodian, actually issues and redeems it. BitGo's trust company converted to a national trust bank supervised by the OCC in late 2025, so the issuer now sits under federal banking oversight. Approved institutional customers mint and redeem USD1 one-to-one with dollars; most other users buy and sell it on exchanges.

Reserves are held in short-term US Treasuries, government money market funds and cash equivalents. Each month an independent accounting firm, Crowe LLP, examines BitGo's report comparing tokens outstanding with assets available for redemption. That is an attestation of reserves at specific dates, not a full audit of BitGo or World Liberty Financial, but it follows AICPA criteria for asset-backed tokens.

Because the issuer is an OCC-chartered bank, USD1 is positioned for the GENIUS Act framework once its rules are final. The political connection draws scrutiny: World Liberty Financial is associated with the Trump family, and critics have raised conflict-of-interest concerns. Those questions do not change how the reserves work, but they add reputational and policy risk that most other stablecoins do not carry.

Key moments

1. 2025World Liberty Financial unveils USD1 in March with BitGo as issuer and custodian; in May it is chosen for MGX's $2 billion Binance investment.
2. 2025BitGo receives OCC approval in December to convert its trust company into a national trust bank.
3. 2026Monthly reserve attestations by Crowe LLP continue under BitGo Bank & Trust, N.A.

Supply

There is no supply cap. USD1 is minted when approved customers deposit dollars with BitGo and burned when they redeem, so supply follows demand. Interest on the reserves goes to the issuer and its partners, not to holders.

Risks to understand

• Political and reputational risk: ties to the Trump family's World Liberty Financial could bring policy scrutiny or shifts in exchange support.
• Concentrated demand: if a few large holders or promotions drive much of the supply, sudden redemptions could stress liquidity.
• Attestation limits: monthly examinations confirm reserves at set dates but are not continuous audits.
• Regulatory transition: The GENIUS Act, signed in July 2025, is expected to take effect on January 18, 2027. As of October 2026, Treasury, the OCC and the Federal Reserve had published proposed implementing rules, but final rules were still pending.

Last reviewed October 4, 2026 by The Crypto Guide editorial team. Utility Lens ratings are editorial judgments, not investment advice. Market data from CoinGecko. Spot an error? Request a correction.