USD1 is a U.S.-dollar-pegged digital token issued by BitGo and branded by World Liberty Financial. It is designed to be redeemable for one U.S. dollar, but direct redemption is limited to eligible BitGo account holders, and USD1 can trade above or below $1 on third-party platforms. Its reserves, redemption rules, supported networks, and regulatory status all matter when assessing what the peg means in practice.
What USD1 is—and who is responsible for it
USD1 is a stablecoin: a digital token intended to maintain a value of one U.S. dollar. BitGo is the issuer and processes initial purchases and redemptions under its USD1 Terms. World Liberty Financial and affiliated entities own the USD1 brand and provide certain services, according to the issuer FAQ. These roles are distinct: a brand owner is not necessarily the token’s current issuer.
BitGo’s terms state that “USD1 tokens are not money or legal tender.” USD1 is also not a bank deposit; its dollar target does not itself provide deposit insurance or a guaranteed price on every market.
How USD1 works
Reserves are intended to back redeemable tokens
BitGo’s terms say it holds reserve assets with an aggregate dollar value at least equal to outstanding USD1 at the end of each business day. Eligible reserve assets may include cash, short-term U.S. Treasury bills, government money-market funds, and specified Treasury-backed overnight repurchase agreements. The terms say reserve assets are held separately from BitGo’s own assets for USD1 users, subject to the terms and applicable regulatory requirements.
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Issuance and redemption happen under eligibility rules
Eligible account holders can request minting or redemption through a BitGo GoAccount, subject to BitGo’s services agreement, eligibility and compliance checks, possible transaction limits, and fees. Under the terms, people without a qualifying account cannot buy or redeem directly with BitGo. Other holders may be able to exchange USD1 through a supported platform or custodian, but that provider sets its own terms and access rules.
Tokens transfer across supported blockchains
USD1 can move on supported networks. BitGo’s terms identify Ethereum and BNB Chain and allow additional networks to be specified. The August 2026 reserve report says USD1 was minted and redeemed on Ethereum, BNB Smart Chain, Solana, Tron, Aptos, Tempo, and Canton. Network support can change, and labels can be ambiguous: before sending, verify the current official token contract and receiving network. On-chain transfers may be irreversible, and BitGo’s terms allow freezing or restricting access in specified circumstances, including legal process or compliance concerns.
USD1 does not pay interest by itself
Holding USD1 does not entitle a holder to interest earned on reserve assets, and the token itself does not pay a return. A separate lending or yield service would have its own terms and risks; it should not be confused with the stablecoin’s reserve arrangement.
What the August 2026 reserve report says
KPMG LLP examined BitGo management’s assertion for the August 2026 report using the AICPA’s 2025 criteria for stablecoin reporting. KPMG concluded that the management assertion was fairly stated, in all material respects. The opinion concerns that assertion and its specified presentation and disclosure, not all other information accompanying the report.
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| Measure | BitGo management figure as of August 31, 2026 |
|---|---|
| Redeemable USD1 tokens outstanding | 4,195,303,689 |
| Redemption assets | $4,195,716,067 |
| Assets above redeemable tokens | $412,378 |
| Demand-deposit cash and cash equivalents | $1,129,357,410 |
| Government money-market funds, at net asset value | $3,066,358,657 |
The report states there were no time-locked, test, or access-restricted tokens during the reporting period and that reported tokens were eligible for redemption under the contractual terms. These are figures for the report’s measurement date, not a live reserve balance or a promise that USD1 will trade for exactly $1 on every venue. The BitGo attestation index listed reports through August 2026; whether a September 2026 report had appeared by October 7, 2026, was not established.
Why USD1 may not trade at exactly one dollar
The reserve design and direct redemption process support the dollar target, but they do not set the price on every exchange. BitGo says third-party prices are not guaranteed to equal one dollar. A person who cannot redeem directly with BitGo depends on the platform or custodian they use, including its USD1 support, liquidity, fees, and rules. Thus, a $1 target is not the same as a guaranteed $1 cash-out for every holder at any time.
Uses and availability
World Liberty Financial promotes USD1 for cross-border payments, broader access to dollars, and DeFi or capital-market uses on its USD1 product page. The FAQ describes lending and borrowing through its DeFi protocol as a future feature once operational and subject to eligibility. These are promoted use cases or plans, not confirmation that every feature is currently available to all holders. Availability depends on supported platforms, networks, jurisdictions, and provider terms.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Regulatory status and the proposed issuer transition
On August 14, 2026, the Office of the Comptroller of the Currency granted preliminary conditional approval for the proposed World Liberty Trust Company, National Association. The OCC decision says the proposed bank plans to issue USD1 to institutional clients and assume the issuer and custodian role from BitGo. The decision also says final approval and authorization to begin business require completion of pre-opening requirements. It therefore describes a proposed transition, not an operational change established by that decision.
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The OCC decision says the proposed bank would not be FDIC-insured and discusses conditions involving the GENIUS Act and future implementing rules. A trust-bank charter does not make USD1 a bank deposit or give token holders FDIC deposit insurance. For the current issuer and redemption rules described in BitGo’s terms, see the USD1 Terms and the OCC Corporate Decision #1385.
Quick Recap
What to check before buying or transferring USD1
- Access: Confirm whether you can redeem directly through an eligible BitGo account or would have to sell or exchange through a third party.
- Provider terms: Check that your exchange or custodian currently supports USD1, the relevant network, and withdrawals or deposits you intend to use.
- Network and contract: Verify the exact receiving network and token contract using current official information before sending; a mistaken network or address can make funds inaccessible.
- Price and costs: Review the quoted market price, spreads, transaction fees, and any platform-specific restrictions rather than assuming a one-dollar redemption is available to you.
- Current disclosures: Check the latest reserve report and issuer terms. A dated examination is evidence about a particular reporting period, not a real-time balance or a guarantee of market price.
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