msUSD Lost Its Dollar Peg After Split with Accountable

The Main Street stablecoin msUSD lost its peg to the dollar and fell to around $0.064 after ending its partnership with reserve attestation provider Accountable. This hit token holders, liquidity pool users, and those who were counting on a fast, delay-free redemption. For traders and long-term holders, this is no longer a minor technical issue, but a direct risk to money.

Main Street has already launched a vote on a plan to restore msUSD’s $1 peg and compensate part of the users. At the same time, hard numbers have surfaced on-chain: according to figures cited by Herd co-founder Andrew Hong, only about $4,000 remained in the redemption reserve, while 74 million tokens were in circulation and the market value after the crash was estimated at roughly $18 million.

Why did msUSD break below $1?

The key blow came after Accountable terminated its agreement with Main Street due to non-compliance with reserve verification standards. The company said outright that Main Street no longer met its requirements, and the market, which relied on this data channel, was left without support. For a stablecoin, trust in reserves often matters no less than the code itself. Here, it hit hard.

After that, msUSD first fell to around $0.064 and then partially recovered. According to updated CoinGecko data, on June 22, 2026 the token was trading near $0.2498, and its new all-time low was recorded on June 21, 2026 at $0.065. Daily volatility was also sharp: the 24-hour range was $0.1660-$0.2866, and sentiment on the CoinGecko page showed 100% bearish.

Another nuance is that Main Street’s redemption model itself did not look instant. The redemption documentation mentioned a 7-day cooldown for USDC withdrawals and a cap on simultaneous requests, usually around 20% of total supply. When reserves are thin and exits are not immediate, pressure on the price only increases. That is why the msUSD story went beyond a routine dip. This is where the main question for the market begins.

What do the reserve and liquidity numbers show?

The picture here is even harsher. Andrew Hong reported that redemption requests worth about $4 million were processed over the past few days, after which the reserves were nearly exhausted. He also noted that two msY markets are operating in Morpho with LLTV of 86% and 91.5%, and about $17.85 million of Alpha protocol liquidity is placed in one of them. This is no longer just a local failure, but a problem that affects adjacent positions.

There is another detail that explains the sharpness of the move. According to CoinGecko, msUSD’s market capitalization stood at $18.62 million, and the circulating supply was 74.37 million MSUSD. At the same time, liquidity depth on major pools looked very weak: on Uniswap V3, the MSUSD/USDC pair had about $3.0k of depth within ±2%, and on Balancer V3 it was about $3.1k. With such volumes, even moderate selling can easily push the price down.

“Main Street was unable to meet our verification standards. We understand that markets relied on this data channel, and we will continue working with ecosystem partners as the situation develops,” Accountable said.

And one more point. According to Hong, the RedStone oracle last updated the msUSD price on June 20 and was still showing $1.0639, so liquidations had not yet occurred. In the Sonic network, he said, there were only 164,000 msUSD, so he assessed the risk to that ecosystem as minimal. In other words, the problem is not the same everywhere, but the signal for the market overall is very bad. That is why it is worth watching not only the price, but also how redemption works.

• msUSD fell to around $0.064 after the split with Accountable.

• There were 74 million tokens in circulation, and the market value after the drop reached about $18 million.

• Redemption reserves were estimated at only about $4,000.

• Redemption requests worth nearly $4 million were processed over a few days.

• CoinGecko showed $0.2498 on June 22, 2026 and 24-hour volume of $154.7k.

• The new all-time low was recorded on June 21, 2026 at $0.065.

What does this mean for investors?

For those who held msUSD as a “safe haven,” this is a blunt reminder: a stablecoin is supported not only by its name, but by reserves, redemption mechanics, and the team’s response speed. If reserves are small and withdrawals are slowed, even a token pegged to the dollar can collapse almost to zero. There is no magic here, only math and trust.

Ukrainian users should look not only at the exchange rate, but also at whether the project has transparent redemption, who verifies the reserves, and how often the data is updated. In this story, it was the split with the attestation provider that became the trigger, not one large sale. If you need to move into hryvnia quickly, it is better not to wait until the market starts falling apart. In similar situations, it helps to quickly sell USDT TRC20 to Monobank without unnecessary delays.

Another simple takeaway: stablecoins with additional yield or a complex reserve structure require closer scrutiny than classic dollar coins. If the documentation already includes a 7-day cooldown and a redemption limit, that will be felt very quickly on a stressful day. That is why such stories often hit liquidity before the market has time to fully reassess them. For holders, this is a signal not to ignore the fine print.

Frequently asked questions

Why did msUSD lose its dollar peg?

After Accountable ended its partnership with Main Street, the market lost an important channel for reserve verification. Against that backdrop, msUSD fell to around $0.064, and redemption reserves were nearly depleted. That was the main trigger.

Can Main Street bring msUSD back to $1?

The team has already put a plan to restore the peg and provide compensation to a vote. But success depends on whether it can secure enough community support and find real backing for redemptions. Without that, the price cannot be held.

How big are the risks for other Main Street tokens?

According to Andrew Hong, there are two msY markets in Morpho with high LLTV of 86% and 91.5%, and about $17.85 million of Alpha liquidity is placed in one of them. This means pressure could spill over into adjacent positions if the msUSD situation does not stabilize. The risk here is no longer limited to one token.

While the Main Street team votes on a rescue plan and the market checks every new step, the msUSD story has already become a lesson for everyone holding stablecoins without a backup plan. If you need to quickly sell Bitcoin to Monobank, it is better to do it before panic eats up liquidity.

This material is not financial advice. Cryptocurrency trading involves significant risks. Part of this text was prepared with the help of artificial intelligence based on public sources and reviewed by our editorial team.