How It Works
USD1 is fully backed by short-term US government securities and USD cash deposits, with BitGo Trust Company acting as custodian. Users mint USD1 through authorized distribution partners, with reserves held in segregated accounts. The backing is attested regularly through third-party verification. BitGo's custody model ensures that reserves are legally ring-fenced from WLFI's operational funds. USD1 was designed to be compliant with anticipated US stablecoin legislation, anticipating regulatory clarity in 2025.
Backing Type: Fiat-Backed
Fiat-backed stablecoins are collateralized by real-world assets held in bank accounts or custodied trust accounts — typically US dollars, Treasury bills, or cash equivalents. The issuer is responsible for maintaining 1:1 reserves and publishing regular attestations.