DeFi
Hong Kong-based First Digital’s $3B Stablecoin Comes to Sui Network as Part of DeFi Push
Hong Kong-based stablecoin issuer First Digital Trust said on Wednesday it was extending its funding by $3 billion. FDUSD token for the Sui (SUI) blockchain after being available on Ethereum (ETH) and BNB chain (BNB).
This expansion is part of First Digital’s efforts to boost the use of FDUSD among decentralized finance (DeFi) users, CEO Vincent Chok said in an interview with CoinDesk.
FDUSD, issued under Hong Kong’s digital asset rules and backed by U.S. Treasuries and bank deposits to keep its price anchored at $1, quickly became the fourth-largest stablecoin behind USDT of Tether, Circle’s USDC, and MakerDAO’s DAI, amassing a market capitalization of $3.3 billion since its launch. launched last year.
The token benefited greatly from crypto exchange giant Binance commercial promotion following the close of the Binance USD stablecoin issued by Paxos, ordered by New York State regulators. FDUSD trading volume surpassed $10 billion in the last 24 hours, with over 90% coming from Bitcoin. (BTC)ether (ETH) and USDT spot trading pairs on Binance, according to CoinGecko data.
“Sui is a promising network and very supportive of the DeFi space,” Chok said in the interview. “Their growth in one year is also incredible, so we want to grow together as a new stablecoin.”
Sui, created by the team of developers who led Meta’s Diem crypto project, has recently seen rapid growth in DeFi activity. Network Total Value Locked (TVL), a key DeFi metric showing the combined value of assets on a protocol or blockchain, has mushroomed at around 700 million dollars compared to 100 million dollars six months ago, DéfiLlama data watch.
The expansion to Sui also makes FDUSD the first stablecoin natively issued on the Sui network. Sui hosts $340 million worth of USDC and USDT stablecoins, according to DefiLlama, but users had to use bridges to transfer tokens from other blockchain rails, which incurs fees and risks.
“This integration will have a profound impact on the Sui community, fueling increased liquidity, expanding the utility of the network and opening new possibilities for builders and users,” said Greg Siourounis, managing director of the Sui organization. Ecosystem Development Sui Foundation, in an emailed statement.