World Liberty Monetary (WLFI) has carried out a real-time, on-chain proof-of-reserve system for its $4.7 billion USD1 stablecoin.
This represents a pivot from the stablecoin’s month-to-month attestation reviews following a latest safety breach and market panic that briefly broke the asset’s greenback peg.
USD1 Stablecoin Adopts Dwell Chainlink Monitoring to Soothe Market Jitters
The crypto protocol, which maintains shut ties to President Donald Trump’s household, introduced the improve on February 27.
The stablecoin business has a transparency downside.
Most depend on quarterly attestations. USD1 already does month-to-month – higher than anybody else. However even month-to-month attestations have a 1-month reporting delay as a result of accounting takes time.
We simply solved that. Thread 👇
— WLFI (@worldlibertyfi) February 27, 2026
The brand new system integrates the Chainlink Runtime Setting to constantly pull, validate, and write reserve knowledge from crypto custodian BitGo.
Because of this, USD1 customers can now monitor the stablecoin’s complete provide, reserve backing, and dwell collateralization ratio throughout 5 networks, together with Ethereum, Solana, and BNB Chain.
Actual-time proof of reserves confirms the existence of $4.7 billion in short-term U.S. authorities treasuries and money equivalents at BitGo.
USD1 Stablecoin Complete Reserves. Supply: WLFI
Nonetheless, business analysts warning that the dashboard nonetheless gives restricted granularity.
The continual knowledge feed doesn’t routinely reveal the rapid liquidity profile of the underlying belongings throughout a financial institution run. It additionally fails to defend the protocol from future vulnerabilities in its good contracts or government safety practices.
It’s because the improve arrives simply days after USD1 misplaced its $1 peg and briefly slipped to a low of $0.994.
The WLFI group attributed the de-pegging to a “coordinated attack.” They alleged that malicious actors hacked a number of co-founder accounts, paid influencers to generate panic, and opened quick positions towards the protocol’s native token.
A coordinated assault was launched towards USD1 this morning. Attackers hacked a number of WLFI cofounder accounts, paid influencers to unfold FUD, and opened large $WLFI shorts to revenue from the manufactured chaos.
It didn’t work.
Due to USD1’s sound mint-and-redeem mechanism…
— WLFI (@worldlibertyfi) February 23, 2026
Nonetheless, the reliance on a “coordinated attack” narrative has drawn scrutiny. The admission that a number of government accounts had been compromised exposes extreme operational safety vulnerabilities in a protocol that manages billions in institutional capital.
Moreover, the challenge’s unprecedented political connections inherently entice elevated regulatory consideration and adversarial market habits, elevating the stakes for its safety infrastructure.
Regardless of the operational failures, USD1 appeared to have averted a catastrophic collapse as a result of its core redemption mechanism remained practical.
