World Liberty Financial's USD1 Supply Drops $385M in Nine Days as One Address Redeems $200M

World Liberty Financial's USD1 stablecoin lost 8.71% of its supply in nine days, a fall of $385.03 million, as holders redeemed tokens on Ethereum and BNB Chain, according to an Onchain Benchmark report covering Oct. 6 to Oct. 15. Supply across the three chains it tracks, Ethereum, BNB Chain and Solana, closed the period at $4.04 billion.

For anyone holding USD1, the redemptions were orderly. The token traded between $0.998 and $1.000 throughout, and the redeemed tokens were destroyed through the issuer's own contract, meaning the supply fell because coins were taken out and burned. There was no depeg to trade around, and no break in the dollar claim.

The more interesting question is who took the money out. Nearly $200 million of the BNB Chain redemptions started at a single unlabelled address, and the researchers could not establish who controlled those funds or why they were redeemed.

One Address Sent $200M to Redemption on BNB Chain

On BNB Chain, $200.00 million of the $200.50 million sent for redemption originated at one address, in lots of $30 million to $50 million, the report found. That is a single wallet behind almost the entire BNB Chain outflow.

The Ethereum leg is more legible. Ethereum accounted for $184.60 million in net redemptions across 63 token burns, and more than 99% of the tokens sent for redemption passed through a wallet labelled as BitGo, USD1's current issuer and custodian.

Solana, the third chain, did not join in. Its USD1 supply stayed put at about $1.42 billion over the nine days reviewed. Transfers between Ethereum and BNB Chain totalled less than $1 million, so the missing supply was not simply moved from one of those networks to the other.

USD1 Shrank Faster Than the Stablecoins Around It

Supply on Ethereum fell 11.45% over the nine days. Over the same stretch USDe fell 4.93%, USDC 2.18% and circulating USDT 0.76%, while PYUSD rose 2.57% and RLUSD 6.11%. USDe's decline came in the same crypto selloff.

So USD1 was not alone in shrinking, but it shrank harder than the large dollar tokens it competes with for liquidity. The issuer-specific part of the story sits in the concentration: one anonymous address on BNB Chain and one custodian wallet on Ethereum.

A Charter, a Handover and an Unfinished Approval

The redemptions land while USD1's issuer is preparing to change hands. World Liberty Financial's trust company won preliminary conditional approval from the Office of the Comptroller of the Currency on Aug. 14, 2026 to charter World Liberty Trust Company, National Association, in Bay Harbor Islands, Florida.

The OCC decision is explicit that this is not final: "Final approval and authorization pursuant to 12 USC 27(a) for the Bank to commence business will not be granted until all preopening requirements are met," it says, and the OCC can modify, suspend or rescind the preliminary approval. The bank intends to acquire and assume USD1 reserve assets and associated liabilities from BitGo once it is established, and to issue the fiat-backed stablecoin to institutional clients nationwide, taking over from BitGo Bank & Trust, National Association, the current exclusive issuer and custodian.

The application drew seven comments from four commenters. Two challenged the OCC's authority to charter the bank, and three questioned how much public information and comment time had been given. A community-bank trade group has asked a federal court to rein in the charter type.

Reserve reporting lags the drawdown. BitGo's latest published reserve report, for Aug. 31, counted 4.20 billion USD1 outstanding, matched by $4.20 billion of cash and government money-market fund shares. World Liberty's own proof-of-reserves dashboard showed total USD1 supply of about 4.01 billion on Oct. 19.

Where the Three-Chain Split Ended

By the Oct. 15 close, Ethereum held 35.39% of USD1's three-chain supply, Solana 35.07% and BNB Chain 29.54%. The token's smaller deployments, on networks including Tron, Aptos and Mantle, held about $50 million and fell by $0.35 million, all of it on Aptos.

The drawdown itself is settled: $385 million out, peg intact, one wallet behind most of the BNB Chain leg and most of Ethereum's route running through BitGo. What is not settled is who was redeeming and whether the money comes back. The next scheduled event is the OCC's decision on whether World Liberty Trust Company can open for business, and with it take over USD1's reserves from BitGo.