Hong Kong-based First Digital Trust has decided to expand its FDUSD token, which was launched last year and quickly became the fourth-largest stablecoin with a value of $3 billion, to the Sui (SUI) blockchain. This move is part of the company’s goal to encourage decentralized finance (DeFi) users to make more use of FDUSD.
FDUSD: The Fourth-Largest Stablecoin
According to First Digital Trust CEO Vincent Chok, FDUSD, which is issued under Hong Kong’s digital asset regulations and backed by US Treasury bonds and bank deposits to peg its price to $1, has amassed a market value of $3.3 billion in the last year. Thus, it quickly rose to become the fourth-largest stablecoin following Tether‘s USDT, Circle’s USDC, and MakerDAO’s DAI.
FDUSD‘s success is also attributed to greatly benefiting from the trading promotions of crypto exchange giant Binance. Particularly after the shutdown of the Binance USD stablecoin issued by Paxos by order of New York state regulators, FDUSD experienced a significant increase in trading volume on Binance.
Regarding the expansion to the Sui network, Chok stated, “Sui is a promising network and greatly supports the DeFi space. Their growth within a year is incredible, so we want to grow together as a new stablecoin.”
Stablecoins on the Sui Network
The integration with Sui will also make FDUSD the first top-tier stablecoin natively issued on the Sui network. This step will contribute to the rapid growth of Sui’s DeFi activities. Currently, according to DefiLlama data, Sui hosts 340 million USDC and USDT, but bridges were needed to transfer these tokens from other Blockchain networks, which came with fees and risks. This integration will significantly contribute to the development of the Sui network.
Greg Siourounis, General Manager of the Sui Foundation, commented on the integration, “This integration will have a profound impact on the Sui community, fueling enhanced liquidity, expanding network usage, and unlocking new possibilities for builders and users.”
This development stands out as a significant milestone for both First Digital Trust and the Sui network. The collaboration and integration between the two platforms are expected to further strengthen the DeFi ecosystem and offer users a wider variety of options.
