Initia Foundation Approves Grant to Restore Backing for iUSD Collateral

Simon Yoon

1 min read

Initia Foundation Approves Grant to Restore Backing for iUSD Collateral

The grant caps are 1.08 million USD Coin (USDC), 105 Ether (ETH) and 1.4 million AUSD0, with transfers subject to reconciliation and final approval.

By Simon Yoon

Published Oct 28, 2026, 3:55 AM EDT

Mentioned assets

USDC
ETH Ethereum

A reinforced steel link joins two sections of a heavy chain / TokenPost.ai

Initia Foundation approved a grant to restore 1:1 backing for Noble's USD Coin (USDC), wrapped Ether (WETH) and AUSD0 used as iUSD collateral after the Oct. 23 security incident.

The grant is capped at 1.08 million USDC, 105 Ether (ETH) and 1.4 million AUSD0. Funds will cover shortfalls confirmed through reconciliation, with transfers requiring final approval.

Initia said full backing for the affected assets will be restored when the chain resumes. The announcement gave no restart date.

The Oct. 23 incident moved about $2.7 million in assets before Initia paused its network. Initia has also been auditing a proposed fix with security partners as part of its restart work.

Simon Yoon

Reporter

Simon Yoon reports on blockchain technology for TokenPost. Send corrections or tips to info@tokenpost.com.