FDUSD Moves to Sui Blockchain

FDUSD, pegged to the dollar, has gained significant traction, with a market capitalization of $3.3 billion.

Sui will be the third blockchain to support native FDUSD, following BNB Chain and Ethereum.

According to an interview, the CEO of First Digital plans to further integrate the token into the decentralized finance sector.

First Digital Trust, a provider of stablecoins based in Hong Kong, announced on Wednesday that it is porting its FDUSD token, which is pegged to the dollar and is valued at $3 billion, from Ethereum (ETH) and BNB Chain to the Sui (SUI) blockchain.

The expansion aims to increase FDUSD utilization among DeFi users, according to First Digital CEO Vincent Chok’s interview. 

Since its launch a year ago, FDUSD, which was issued in accordance with Hong Kong’s digital asset regulations and backed by U.S. Treasury bills and bank deposits to maintain its $1 price anchor, has amassed a market capitalization of $3.3 billion, placing it behind Tether’s USDT, Circle’s USDC, and MakerDAO’s DAI as the fourth-largest stablecoins.

The token has primarily benefited from the trading promotion of cryptocurrency exchange giant Binance since New York state regulators ordered the shutdown of the Paxos-issued Binance USD stablecoin.

FDUSD’s 24-hour trading volume surpassed $10 billion, with more than 90 percent of that volume originating from spot trading pairs for bitcoin (BTC), ether (ETH), and USDT on Binance, according to CoinGecko data.

Chok stated in the interview, “Sui is an emerging network that is extremely active in the DeFi industry.” “Their one-year growth is similarly remarkable; therefore, we are eager to develop as a new stablecoin together.”

DeFi activity on Sui, which was developed by the same group that abandoned the Diem cryptocurrency project for Meta, has increased dramatically in recent times.

DefiLlama data indicates that the network’s total value locked (TVL), a key DeFi metric indicating the combined worth of assets on a protocol or blockchain, has skyrocketed to approximately $700 million from $100 million six months ago.

Sui Becomes Home to FDUSD

As a result of the expansion to Sui, FDUSD is now the first leading stablecoin to be issued natively on the Sui network.

Sui hosts USDC and USDT stablecoins worth $340 million, according to DefiLlama; however, users were required to transfer tokens from other blockchain rails via bridges, incurring fees and risks.

Managing director of the ecosystem development organization Sui Foundation, Greg Siourounis, said in an emailed statement, “this integration will have a profound effect on the Sui community, fostering increased liquidity, broadening the network’s utility, and unlocking new opportunities for builders and users.”