DWF Labs has disclosed the composition of reserves backing its USDF stablecoin, revealing that stablecoins and Bitcoin (BTC) collectively comprise 89% of the total reserve assets. The reserve structure maintains a 116% collateralization ratio, indicating reserves exceed the stablecoin’s issued value by a significant margin.
This overcollateralization provides enhanced security for USDF holders, ensuring the stablecoin remains fully redeemable despite market fluctuations. The heavy weighting toward Bitcoin and stablecoin assets prioritizes market-proven liquidity across reserve holdings.
The disclosure delivers new transparency into USDF’s reserve management strategy through standardized reserve reporting methodology. This comes as demand continues to grow for stablecoins with verifiable reserve structures and robust collateralization safeguards.