2024-04-10
First Digital Trust, a stablecoin issuer based in Hong Kong, announced on Wednesday that it is expanding its FDUSD token to the Sui blockchain. This move comes as part of the company's efforts to increase the usage of FDUSD among decentralized finance (DeFi) users.
CEO Vincent Chok stated in an interview that Sui is a growing network that is supportive of the DeFi space, making it an ideal platform for the expansion of their stablecoin.
FDUSD, which is issued under Hong Kong's digital asset regulations, is backed by U.S. Treasury bills and bank deposits to maintain a stable price of $1.
Since its launch last year, FDUSD has quickly become the fourth-largest stablecoin, following Tether's USDT, Circle's USDC, and MakerDAO's DAI, with a market capitalization of $3.3 billion.
The recent surge in trading volume for FDUSD can be attributed to Binance's trading promotion after the shutdown of the Paxos-issued Binance USD stablecoin. In the past 24 hours, FDUSD's trading volume exceeded $10 billion, with the majority of it coming from bitcoin, ether, and USDT spot trading pairs on Binance.
Sui, created by the developer team behind Meta's Diem crypto project, has experienced significant growth in DeFi activity. The network's total value locked (TVL), which measures the combined worth of assets on a protocol or blockchain, has increased from $100 million to around $700 million in just six months.
By expanding to the Sui network, FDUSD becomes the first top stablecoin to be natively issued on the platform.
Previously, users had to utilize bridges to transfer tokens from other blockchains, incurring fees and risks.
This integration is expected to have a positive impact on the Sui community by enhancing liquidity, expanding the network's utility, and unlocking new possibilities for builders and users, according to Greg Siourounis, the managing director of the Sui Foundation.
