First Digital Trust, a leading issuer of stablecoins based in Hong Kong, has announced the expansion of its FDUSD stablecoin to the Sui blockchain network. This strategic move aims to further entrench FDUSD within the decentralized finance (DeFi) sector and follows its successful launch and growth on the Ethereum and BNB Chain platforms.
A Rapid Ascent in the Stablecoin Hierarchy
Since its inception last year, FDUSD has rapidly ascended the ranks to become the fourth-largest stablecoin, amassing a market capitalization of $3.3 billion. This impressive growth trajectory is partly attributed to the stablecoin’s stringent adherence to Hong Kong’s digital asset regulations, ensuring its backing by U.S. Treasury bills and bank deposits to maintain a stable $1 peg.
The token received a significant boost from Binance, the crypto exchange titan, which promoted FDUSD trading following the New York state regulators’ shutdown of the Paxos-issued Binance USD stablecoin. According to CoinGecko data, FDUSD’s trading volume recently surged past $10 billion in a 24-hour span, with a substantial portion of this volume stemming from trading pairs with bitcoin (BTC), ether (ETH), and Tether (USDT) on Binance.
Expanding DeFi Footprint with Sui Integration
Choosing Sui for its latest expansion, First Digital aims to leverage the network’s burgeoning DeFi ecosystem and rapid growth. “Sui is an up-and-coming network and very supportive of the DeFi space,” stated Vincent Chok, CEO of First Digital, in an interview with CoinDesk. He noted Sui’s remarkable progress within just a year, expressing a desire for mutual growth between FDUSD and the Sui network.
Sui, developed by the team behind Meta’s discontinued Diem crypto project, has witnessed a significant uptick in DeFi activities. Data from DefiLlama indicates that Sui’s total value locked (TVL)—a critical metric in DeFi that reflects the total assets held on a network or protocol—has soared to approximately $700 million from $100 million six months ago.
A Milestone for Sui Network
The introduction of FDUSD marks the first time a leading stablecoin is natively issued on Sui, setting a precedent for the network. Previously, Sui hosted $340 million worth of USDC and USDT stablecoins, requiring users to employ bridges for token transfers from other blockchain platforms, often incurring fees and risks.
Greg Siourounis, managing director of the Sui Foundation, lauded the integration, highlighting its potential to boost liquidity, expand network utility, and open new avenues for both builders and users within the Sui community.
This expansion signifies a pivotal moment for both First Digital and the Sui network, promising to enhance FDUSD’s role in the DeFi landscape while propelling Sui’s growth and innovation in digital finance.
