Following Ethereum and BNB Chain, Sui will offer native FDUSD support. In an interview with CoinDesk, the CEO of First Digital explained that the integration is a step toward further integrating the token into the decentralized finance ecosystem.
First Digital Trust, a stablecoin issuer located in Hong Kong, announced on Wednesday that it is extending the availability of its $3 billion dollar-pegged FDUSD token to the Sui blockchain, following its availability on Ethereum and BNB Chain.
In an interview with CoinDesk, First Digital's CEO Vincent Chok claimed that the expansion is part of their drive to expand FDUSD usage among decentralized finance (DeFi) customers.
Since its launch last year, FDUSD has amassed a market capitalization of $3.3 billion, making it the fourth-largest stablecoin behind Tether’s USDT, Circle’s USDC, and MakerDAO’s DAI. It is issued under Hong Kong’s digital asset rules and is anchored to $1 by using U.S. Treasury bills and bank deposits.
After Binance USD, a stablecoin produced by Paxos and ordered shut down by regulators in New York state, the token gained a lot of traction because to the trading push by crypto exchange giant Binance. Based on data from CoinGecko, the trading volume of FDUSD has exceeded $10 billion in the last 24 hours, with over 90% of that volume coming from Binance's spot trading pairings for bitcoin {{BTC}}, ether {{ETH}}, and USDT.
During the interview, Chok mentioned that Sui is a network that is on the rise and is highly supportive of the DeFi industry. "Their growth within a year is amazing as well, so we want to grow together as a new stablecoin."
Recently, there has been a surge of DeFi activity surrounding Sui, which was developed by the same team behind Meta's defunct Diem crypto project. A crucial DeFi measure that represents the collective worth of assets on a protocol or blockchain, the network's total value locked (TVL) has skyrocketed to nearly $700 million from $100 million six months ago, according to DefiLlama data.
With its recent Sui launch, FDUSD has become the first leading stablecoin to be issued natively on the Sui network. The USDC and USDT stablecoins hosted by Sui are valued $340 million, according to DefiLlama, but transferring them from other blockchain rails requires users to use bridges, which introduces fees and dangers.
The integration is going to change the game for the Sui community in a big way. It will increase liquidity, make the network more useful, and open up new opportunities for users and builders," said Greg Siourounis, managing director of the Sui Foundation's ecosystem development organization, in an email statement.
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