Trump-affiliated USD1 has $0 in excess reserves
USD1, the stablecoin from Trump-affiliated World Liberty Financial, has issued its first reserve report, and in doing so, revealed that it holds no excess reserves. The report, which was reviewed by the accounting firm Crowe, provides information about USD1 as of April 30. Issued by the custodian, BitGo, the report notes that the entirety of the reserves is invested in the Fidelity Investments Money Market Government Portfolio—Institutional Class. Read more: World Liberty Financial announces USD1 without governance vote This money market account is made up of US government securities of various types, including treasuries and other agency debts. USD1 reserves have no safety cushion Unlike other stablecoins, USD1 doesn’t keep excess assets in its reserves. This means that if this money market fund were to break the buck, then USD1 would have insufficient assets available to back the token . This is sharply different from other stablecoins; Tether,...