World Liberty Financial's USD1 stablecoin loses over $385 million in market cap amid large redemptions
USD1 stablecoin supply fell 8.71% to 9.1% as holders redeemed hundreds of millions on Ethereum and BNB Chain while the token maintained its dollar peg.
Why it matters
The orderly redemptions without depegging demonstrate USD1's peg resilience under significant outflow pressure, though the concentration of BNB Chain redemptions in a single address raises questions about holder concentration risk.
Where the sources disagree
Figures that do not reconcile
Found by comparing the numbers in the reports automatically. They are differences, not yet confirmed to be about the same thing.
reported flows (redemptions)
$200 million
Cointelegraph
$184.60 million
Altcoin Buzz
Cointelegraph reports $200 million, Altcoin Buzz reports $184.60 million (8% apart).
Key facts
USD1 supply decreased 8.71% over nine days
8.71 %Reported by Altcoin Buzz
USD1 maintained dollar peg trading between $0.998 and $1.000
Reported by Cointelegraph
What happened
World Liberty Financial's USD1 stablecoin experienced significant redemptions across Ethereum and BNB Chain between early and mid-October. Cointelegraph reported a market cap decline of more than $400 million over two weeks, falling from $4.43 billion on October 6 to about $4.02 billion. Altcoin Buzz cited an Onchain Benchmark report covering October 6 to 15 showing a $385.03 million supply drop to $4.04 billion, representing an 8.71% decrease. Both sources confirm the token traded between $0.998 and $1.000 throughout with no depegging event. A single unidentified address accounted for nearly $200 million of BNB Chain redemptions, while Ethereum redemptions totaled $184.60 million and largely passed through BitGo, USD1's issuer and custodian. Solana supply remained stable. The identity and motivation behind the large BNB Chain redemptions remain unknown.
How the story developed
- First report
First report by Cointelegraph
World Liberty’s USD1 stablecoin sheds $400M in market cap in two weeks
- Update
First report of USD1 redemptions
Cointelegraph publishes article on USD1 market cap decline
- Independent corroboration
Independently corroborated by Altcoin Buzz
World Liberty Financial's USD1 Supply Drops $385M in Nine Days as One Address Redeems $200M
- Update
Independent corroboration with Onchain Benchmark data
Altcoin Buzz publishes independent report citing Onchain Benchmark research covering Oct 6-15
How coverage built up
Independent sources over time, counted the way the consensus panel counts them: a republication of a wire story does not move the line.
- 19 Oct 2026, 11:57 UTC: Cointelegraph — 1 independent source, 1 reports
- 19 Oct 2026, 15:28 UTC: Altcoin Buzz — 2 independent sources, 2 reports
Affected entities
Also mentioned: Aptos, U.S. Securities and Exchange Commission, Commodity Futures Trading Commission, TRON, PayPal USD
Original sources
| Publisher | Report | Role | Published |
|---|---|---|---|
| Cointelegraph Crypto media | World Liberty’s USD1 stablecoin sheds $400M in market cap in two weeks | Original | |
| Altcoin Buzz Crypto media | World Liberty Financial's USD1 Supply Drops $385M in Nine Days as One Address Redeems $200M | Independent |
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