NUSD supply falls 76% from February level

NUSD supply has fallen by about 76% from the $226 million level documented in February to $53.6 million as issuer Neutrl has suspended redemptions while assessing an undisclosed issue affecting its reserves. Summary NUSD supply has fallen from about $226 million in February to $53.6 million. Neutrl has suspended NUSD minting and redemptions while assessing an undisclosed reserve issue. NUSD supply dropped 18.4% over the past 30 days, while transfer volume fell 72.4%. BA Labs previously flagged counterparty, operational and liquidity risks tied to Neutrl. Neutrl said Thursday that unspecified circumstances had affected protocol reserves, prompting it to pause NUSD minting and redemptions as well as other functions on legal advice. The protocol has not identified the affected asset or counterparty, disclosed whether the event caused a realized loss, or provided a timeline for restarting operations. Neutrl has temporarily paused minting, redemptions, and other protocol functions following circumstances affecting protocol reserves. These measures have been taken in the interest of our users, after advice from legal counsel, to preserve an orderly process while the impact is… — Neutrl (@Neutrl) August 13, 2026 The current $53.6 million supply compares with approximately $226 million recorded by risk-advisory team BA Labs during an assessment in February. RWA.xyz data also showed that NUSD supply fell 18.4% over the latest 30-day period, although neither dataset establishes that the contraction resulted from the reserve issue disclosed this week. NUSD remained close to its intended dollar value despite the suspension. RWA.xyz priced the synthetic dollar at about $0.9984 on Friday, while monthly transfer volume had fallen 72.4% to $71.4 million. NUSD redemptions stop with $53.6 million still in circulation The suspension prevents approved counterparties from exchanging NUSD for its backing assets while Neutrl determines the condition of its reserves. You might also like: Neutrl halts NUSD redemptions over reserve concerns Neutrl said it would disclose timing and next steps when more information becomes available. Until then, minting and redemption functions remain unavailable alongside other protocol operations paused following legal advice. NUSD uses yield-bearing crypto assets and market-neutral strategies to maintain its dollar value. The structure differs from stablecoins backed primarily by cash and short-term government securities because reserve assets can be distributed across custodians, trading venues and investment strategies. RWA.xyz recorded 615 NUSD holders and 347 active addresses over the preceding 30 days. Structured-yield protocol Strata also responded to Neutrl’s decision by pausing minting, redemptions and related functions for contracts in its Neutrl market. Several NUSD-linked products operate through the market, while Strata said its other markets remained operational. Strata has paused minting, redemptions, and related functions on its Neutrl market contracts. This follows @Neutrl announcement that it has paused protocol functions while the impact of circumstances affecting its reserves is assessed.