The Sui Network has never had a non-wrapped stablecoin on offer. That’s about to change with the introduction of the $FDUSD stablecoin. This stablecoin took the spotlight once Binance started using it instead of $BUSD. As a result, $FDUSD is now the fourth biggest stablecoin measured by market cap.
So, let’s take a closer look at Sui and why it introduced the $FDUSD.
What Is the FDUSD Stablecoin?
First Digital Trust, a Hong Kong based stablecoin issuer, is the company behind $FDUSD. The company pegs $FDUSD 1:1 to the $USD. Backing comes from reserves in Asian banks. This is no big surprise, considering their Hong Kong roots. Furthermore, FDT also uses US Treasury debt to back the coin.
What is more of a surprise is the almost $4 billion market cap of $FDUSD. It also had a 24-hour trading volume of almost $4 million. Binance’s trading promotion gave a helping hand with the market cap. New York state regulators shut down the $BUSD stablecoin. Thus, Binance needed an alternative. This alternative turned out to be $FDUSD. As a result, $FDUSD took fourth spot by market cap. That’s behind $USDT, $USDC, and $DAI.
That’s an impressive feature, considering the coin didn’t launch until June 2023. Up until now, $FDUSD was also only available on the Ethereum and BNB chains. After launching on Sui, FDT is eyeing more chains to launch their stablecoin.
To talk about Sui’s first native, non-wrapped stablecoin, FDUSD, @FDLabsHQ‘s @vchok is on stage at #SuiBasecamp to dive into what it will mean for the network. pic.twitter.com/gE657bkfpC
— Sui (@SuiNetwork) April 11, 2024
What Are Sui’s Reasons for Having a Native Stablecoin?
Sui’s main goal for a native stablecoin is to boost its use in their DeFi space. That’s also the main reason for FDT to partner with Sui. Sui has a growing DeFi sector. According to DeFiLlama, Sui currently ranks 13th among all other chains in TVL.
On the other hand, $FDUSD serves as a reliable store of value. It’s a non-volatile crypto option. There’s already $340 million available in $USDT and $USDC. However, this is all bridged, which carries extra risk, and you need to pay fees. Bridges are some of the most fragile parts of the crypto space. Hence, having a native stablecoin available is a big deal.
Among others, it will add liquidity to the network. Furthermore, it will also add utility to Sui’s network. It will also open new opportunities for both builders and users. First Digital Labs hasn’t announced a date yet for the $FDUSD integration in the Sui ecosystem.
Source: First Digital
Conclusion
Sui announced the introduction of its first native, non-wrapped stablecoin. This is the $FDUSD stablecoin by the Hong Kong based First Digital Trust. It will open new opportunities across the Sui ecosystem. It will also be useful for Sui’s DeFi ecosystem.
The current $SUI price is $1.23. It has a market cap of $1.6 billion. The max and total supply are 10 billion. Out of these, 1.29 billion already circulate.
Disclaimer
The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment and informational purposes only. Any information or strategies are thoughts and opinions relevant to accepted levels of risk tolerance of the writer/reviewers, and their risk tolerance may be different from yours.
We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments, so please do your due diligence. This article has been sponsored by Sui.
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