Monfi says MUSD reserves sit on the bank's own books
Monfi says MUSD reserves sit on the bank's own books and calls the setup the only regulated bank dollar. Ethereum shows 6,000 tokens; Labuan has not said so.
Monfi USD (MUSD) is a 6,000-token contract, not the institutional dollar its issuer describes. Monfi Digital Bank Ltd says MUSD is redeemable at par, with reserves in a segregated account on the bank's own balance sheet, and it calls the coin the only regulated bank-issued stablecoin. That line is the company's. On October 21, 2026, Etherscan showed a max total supply of 6,000 MUSD, five holders and no transfers in the prior 24 hours, at 0x157410Eeb85e9Dd2053338167ab33d119a45aF47, the address the bank published.
DeFiLlama's stablecoin API, summed the same day, put pegged-dollar circulating supply at $304.2 billion across 424 assets. SoFiUSD, recorded there under the symbol SOFID, was about $346.5 million of that total. Monfi USD was not in the set. At the $1 par Monfi states, 6,000 MUSD is $6,000 of notional. That is contract arithmetic, not an audited reserve, and the bank has published no reserve total.
What Monfi says the reserves are
A GlobeNewswire release datelined Singapore on October 19, 2026, carried the next day by The Manila Times, says MUSD is issued by the bank and backed one-to-one by dollar cash and cash equivalents. Monfi says the account sits on its own balance sheet, separate from operational capital, regulatory capital and other client deposits. It says the reserves are unencumbered, and neither lent, leveraged nor rehypothecated, reconciled daily, and due for a quarterly report and an annual third-party check. Redemption is described as a bank obligation at par. The release names no cash balance, no auditor and no report.
The release says Estable and Hadron by Tether power the token, with Fireblocks for custody and Chainalysis for monitoring. Access is limited to institutions and qualified private clients after KYC and KYB on monfibank.com. Listings, Monfi says, come later. It dates the public launch to TOKEN2049 Singapore in October 2026. The contract is older than the wire. Blockscout timestamps the proxy deployment at 14:10:59 UTC on September 21, 2026.
Where the page and the chain diverge
Blockscout names the implementation HadronToken. About 4,989.90 MUSD, 83% of supply, sat in a contract it labels PoolManager. Two non-contract addresses held 500 MUSD and about 490.82 MUSD, an unnamed contract held about 19.28 MUSD, and a fifth address held dust. None is labelled as the bank.
The product page does not use the wire's balance-sheet sentence. It says reserves sit apart from company operating funds, and an FAQ answer says the dollars are held "separately from bank's assets." A segregated account on the bank's books, and assets kept outside the bank's estate, are different claims if the bank fails. Monfi does not say which sentence a redemption would follow. The partner strip names Tether Hadron, Sumsub, Bitfinex, Fireblocks and Chainalysis. It does not name Estable. The FAQ still says MUSD "will be" listed. None of those firms has confirmed a role in the sources opened for this piece.
Hadron's own description is not a comment on Monfi. On November 14, 2024, Paolo Ardoino, CEO at Tether, said: "While traditional finance institutions have always pushed for closed ecosystems that are opaque to citizens, Hadron by Tether reinforces our commitment to build a more inclusive future." Tether has not said that it runs MUSD.
A licence number is not a uniqueness ruling
Monfi's legal notice gives company registration LL 18234 and says the firm is licensed by the Labuan Financial Services Authority under licence 230148DB, at Financial Park Complex in Labuan. Authority pages opened on October 21, 2026 did not show that name or that number. The site search is script-driven, so a miss is not proof the licence is absent. It is a reason not to read "the only regulated bank-issued stablecoin" as a Labuan finding. U.S. Bank's USBDC is already a bank dollar token with a clawback, and SoFiUSD is already large enough for DeFiLlama to count.
The relevant comparison is not Tether (USDT) at $182.7 billion on that same pull. Circle's USD Coin (USDC) terms show a non-bank issuer can delay a European redemption. Monfi is offering a bank obligation without the quarterly reserve file it says will exist. Tests for booking a stablecoin as a cash equivalent turn on that file, not on a conference line.
What would settle the claim is a reserve note with a named verifier and a cash figure, a Labuan row a third party can open, or a listing notice from a venue rather than from the bank. Until then, MUSD is a 6,000-token Hadron contract whose peg is still the bank's description.
This article is informational analysis only and is not financial, investment, or trading advice. Cryptocurrencies are highly volatile and can lose substantial value rapidly. Past performance and historical patterns do not guarantee future results. Do your own research and consult a regulated financial adviser before making any investment decision.
Reporting by Karthik Subramanian. Filed 21 October 2026, 13:55 GMT.
Digital Assets Correspondent
Karthik Subramanian is a founder, writer, and technology consultant with nine years in the crypto ecosystem.
