No. 07 · Trust
Reserves
Every USDh is backed 1:1. The dollars behind it sit in one of two pools, depending on whether the USDh is staked.
Two pools#
| Behind USDh | Behind sUSDh | |
|---|---|---|
| Lent to | The US government | Other governments, in dollars |
| Held in | Dollars, US Treasury bills, and dollar stablecoins backed by Treasury bills | Short dollar bonds of other governments |
| Held for | Safety and ease of exit | Interest, which pays for sUSDh rewards |
| Touched by a restructuring | Only if the US restructures | If a government it lends to restructures, sUSDh takes the loss on that loan |
Where to see it#
The app has a Transparency page with one tab for each pool. Each tab lists what is held, how much, and its share of the pool. The same page shows how much USDh exists and the sUSDh price over time.
What you can check on the blockchain yourself is on Check it yourself.
How the reserves are run#
- Bought and held until they mature. No trading.
- No borrowing to buy more, and no derivatives.
- Supply follows dollars. USDh started at zero. Every USDh was made against a dollar that came in.
Who holds them#
The reserves are managed by a company set up only for that job, separate from the issuer. It works with Azimut (asset manager) and Arqaam Securities (broker and custodian in the Dubai International Financial Centre). None of these firms has any power over the USDh or sUSDh contracts. See Legal.
Independent reports#
| Report | Status |
|---|---|
| Monthly reserve report by an independent firm | Planned Each report will be on the Transparency page within 30 days of the month it covers |
How your claim works#
- USDh is a claim on its issuer, Hamilton Digital Assets Limited. The reserves are there to back that claim.
- The reserves back all USDh together. They are not held in trust for individual holders, and holders have no direct claim on them or on the company that manages them. If the issuer ever failed, holders would rank as its unsecured creditors.
- USDh is not a bank deposit, so no deposit insurance covers it.
The full terms are in the USDh Terms and Conditions.