Main Street's msUSD Stablecoin Breaks Dollar Peg, Drops 71% in a Day
Main Street USD (msUSD) broke its dollar peg on Saturday after reserves-verification provider Accountable terminated its service agreement with the protocol, wiping out most of the token's value within hours.
msUSD had traded near $1 for months. It is now changing hands around $0.29, down about 71% over the past 24 hours, with a market capitalization of roughly $30.5 million.
Accountable provides real-time proof-of-reserves checks designed to let firms verify holdings without revealing sensitive data. The company says its network has verified more than $1 billion in client assets, including those linked to Galaxy and Amber Group, and it counts Pantera Capital among its backers.
Main Street had marketed itself as "Accountable-verified" and operated a public, Accountable-powered dashboard tracking msUSD collateral. On Saturday, Accountable said Main Street failed to meet its standards and cut ties immediately. "Accountable has terminated its service agreement with MainStreet, effective immediately. MainStreet was unable to meet our verification standards… We will continue to hold this standard without exception," the firm wrote.
With the feed shut off, the dashboard no longer verifies reserves backing msUSD. On-chain security watchers also flagged sharp declines. PeckShieldAlert reported that the ethereum address 0x4ba01f22827018b4772cd326c7627fb4956a7c00 fell 85%.
Main Street had pitched msUSD as a dollar token redeemable 1:1 for USDC, and promoted staking into msY, a yield strategy token tied to options box spreads—an approach commonly associated with hedge fund-style trades and marketed as "institutional-grade." The model relied heavily on the third-party verification feed and on integrations with larger DeFi venues.
The protocol highlighted an msY market on Morpho, one of the largest decentralized lenders with billions in deposits. msUSD also operates via an upgradeable proxy contract. Security scanner GoPlus has warned that the contract owner can disable sells, mint new tokens, or change fees.
Following the msUSD depeg, msY—Main Street Finance's primary yield token—also slid sharply. PeckShieldAlert said ethereum:0x890a5122aa1da30fec4286de7904ff808f0bd74a plunged 70%, adding that AlphaUSDC Delta V2 (Curator: #AlphaPING) holds about 30% exposure (around $18 million) to the msY/USDC market. The Morpho msY/USDC market was reported as 100% utilized.
The selloff triggered extreme illiquidity on Morpho's msY/USDC pool, with utilization at 100% and borrow rates reaching 138%, while an AlphaUSDC vault carried approximately $18 million of exposure. The msUSD depeg erased more than half of the token's market value in a single day.
The episode adds to a growing list of stablecoin peg breaks this year, underscoring how quickly confidence can evaporate when a key external verifier steps away. For now, msUSD's price action—and any rebound—appears to depend on whether the protocol can demonstrate credible backing. Main Street has not issued a public statement.
