Skip to content
$BTC$82,637+1.0%$ETH$2,427+0.6%$SOL$105.44+1.6%$XRP$1.31+1.4%$TON$1.780.0%MCap$2.73T+1.2%BTC.D60.4%Fear&Greed59 GreedGas0.12 gwei·1.1 sat/vBNews mood18% bullish
Basis Desk

New: Basis Desk Verify for Chrome & Firefox — fact-check crypto news on any page, free.Get the extension →

Stablecoins & Payments · 1 min read

World Liberty's USD1 Supply Falls $385M Ahead of Issuance Handover

Redemptions on Ethereum and BNB Chain shrank USD1 supply by 8.71% in nine days as World Liberty Financial prepares to assume issuance from BitGo.

Editorial oversight: Julian Mercer, Chief Editor
Neutral
$USDE $0.9997 +0.0% $USDC $1.00 0.0% $USDT $0.9989 +0.0%

At a glance

What happened
USD1 supply shrank $385.03 million (8.71%) between the Oct. 6 and Oct. 15 closes as World Liberty prepared to assume issuance from BitGo [1].
Why it matters
The drop exposed heavy concentration among USD1 holders and ended the token's equal supply split across Ethereum, Solana, and BNB Chain [1].
Who is affected
World Liberty Financial, BitGo, and institutional holders of USD1 across Ethereum, BNB Chain, and Solana [1].
What's next
BitGo is expected to release its October reserve report in late November [1].
Primary source
onchainbenchmark.com: World Liberty’s USD1 stablecoin sheds $400M in market cap in two weeks

Key points

  • USD1 supply shrank 8.71% ($385.03M) to $4.04B between the Oct. 6 and Oct. 15 daily closes across Ethereum, BNB Chain, and Solana 1.
  • Redemptions were heavily concentrated: a single address initiated $200M of the $200.43M burned on BNB Chain 1.
  • World Liberty Financial is preparing to take over issuance and custody from BitGo under an OCC trust charter currently challenged in court 1.

The circulating supply of World Liberty Financial's $USD1 stablecoin declined by $385.03 million between the Oct. 6 close and the Oct. 15 close, contracting 8.71% to $4.04 billion across Ethereum, BNB Chain, and Solana 1. The contraction coincided with preparations by World Liberty to assume direct issuance and custody of the token from BitGo under a conditional federal trust charter approved by the Office of the Comptroller of the Currency (OCC) in August 1.

Redemptions were concentrated across two networks, cutting BNB Chain supply by $200.43 million across 12 burns and Ethereum supply by $184.60 million across 63 burns 1. On BNB Chain, $200.00 million of the redemptions originated from a single unidentified address, executed in lots between $30 million and $50 million 1. On Ethereum, more than 99% of redemptions passed through a wallet labeled as BitGo 1. Solana supply remained flat at $1.42 billion, while smaller deployments across networks such as Aptos fell by $0.35 million 1. Despite the redemptions, USD1 held its peg, trading between $0.998 and $1.000 throughout the period 1.

Shifts in Multi-Chain Distribution

The redemptions disrupted USD1's historically even distribution across its primary networks 1. On Sept. 25, supply was distributed across Ethereum (36.62%), BNB Chain (31.83%), and Solana (31.55%) 1. By the Oct. 15 close, BNB Chain's share fell to 29.54%, while Ethereum stood at 35.39% and Solana at 35.07% 1. Additional redemptions on Oct. 16 positioned Solana as fractionally the largest network for USD1 1. The 11.45% decline in USD1 on Ethereum outpaced peer contractions during the period, including synthetic dollar $USDE (−4.93%), $USDC (−2.18%), and circulating $USDT (−0.76%) 1. At the time of writing, total crypto market capitalization sits at $2.73T.

World Liberty's transition to direct issuance remains subject to broader industry scrutiny as a community-bank trade group challenges its OCC charter type in federal court 1. BitGo's upcoming October reserve report, expected in late November, will provide the next formal disclosure of the reserves backing the contracted token supply 1.

Questions this story raises

Did USD1 lose its dollar peg during the redemptions?
No. USD1 traded between $0.998 and $1.000 throughout the period as tokens were burned directly through issuer contracts [1].
Why did USD1 supply drop in October 2026?
USD1 experienced $385.03 million in redemptions across Ethereum and BNB Chain between Oct. 6 and Oct. 15, including a $200 million redemption originating from a single address on BNB Chain [1].

Sources

  1. [1] World Liberty’s USD1 stablecoin sheds $400M in market cap in two weeks — onchainbenchmark.com, October 16, 2026

Written by Basis Desk's newsroom system from the primary sources above and machine-verified against them before publication. Market figures marked "at the time of writing" come from live exchange data. Report an error: corrections@basisdesk.news · corrections policy.

Community read
How do you read this story for the assets involved? One vote a day, anonymous.
Be the first to vote
Share X Telegram Bluesky Markdown

The Daily Brief, in your inbox at 07:00 ET

Five stories, the numbers that moved, what to watch. Three minutes. No hype, no advice, unsubscribe in one click.

Not financial advice. Basis Desk publishes information, not recommendations. Crypto assets are volatile and you can lose what you invest.