USD1, the stubcoin of the Trump genus World Liberty Financial, issued its first preliminary report, revealing that it does not hold excessive reserves.
Reviewed by accounting company Crowe, this report provides information on USD1 as of April 30th.
A report published by Custodian BITGO points out that the entire reserve is invested in the Fidelity Investments Money Market Government Portfolio (Institutional Class).
Read more: World Liberty Financial Announces USD1 without Governance Voting
This money market account consists of a variety of US government securities, including the Treasury Department and other agent obligations.
USD1 Reserve does not have a safety cushion
Unlike other Stablecoins, USD1 does not keep excess assets in storage. This means that if this money market fund breaks the money, then USD1 has insufficient assets available to back up tokens.
This is very different from other silly things. Tether, the largest stubcoin, claims to have over $5 billion in excess reserves, while Circle, the largest stubcoin in the United States, claims to have over $300 million in excess reserves.
These stable coins will help reduce the risk of single assets in reserves, as they are surrounded by circles following the collapse of Silicon Valley Bank, lose access to funds held at Cryptocapital Colp, and invest in funds invested in redeemed funds.
USD1 seems to have decided that You don’t need to prepare for this type of risk.
