The coin is actively promoted by the Binance exchange

Capitalization of Hong Kong’s FDUSD stablecoin has exceeded $1 billion

07.12.2023 - 10:25


2 min

What’s new? The market capitalization of the FDUSD stablecoin has exceeded $1 billion for the first time since the asset’s launch. According to the analytics platform DeFiLlama, the Ethereum blockchain holds the majority of the coins worth $1,022 billion, with the remaining $45,38 million circulating on the Binance Smart Chain network. FDUSD has risen to sixth place in the stablecoin ranking, while it ranks 61st in the overall cryptocurrency list.

DeFiLlama’s data

What else is known? A sharp jump in the capitalization of FDUSD by 11,4% at once occurred on December 5. On this day, the Binance crypto exchange announced zero fees for spot and margin trading of the asset paired with ETH, XRP, BNB, SOL, DOGE, and LINK for makers and takers. At the same time, the promotion will only start on December 8, at 00:00 UTC, and the exchange did not specify its end date.

Binance is actively promoting FDUSD as a replacement for the BUSD stablecoin, which was issued for the exchange by the US fintech company Paxos. The issue of BUSD was terminated in February this year by the New York Department of Financial Services (NYDFS) after the Securities and Exchange Commission (SEC) allowed it to be recognized as an unregistered security. BUSD support on Binance will be discontinued on December 15.

Back in August, Binance introduced zero fees in the BTC/FDUSD pair, after which the latter began to actively gain market share. By the end of October, it took 16% in the volume of trading in stablecoins on centralized exchanges (CEX) and overtook by this indicator the second most capitalized stable asset — the USDC coin from Circle.

FDUSD is issued by Hong Kong-based custodial and trust company First Digital, presented at the end of May this year. The asset is pegged to the US dollar but is controlled by local financial regulators. Its reserves are held in segregated accounts in Asian institutions.

Subscribe to Getblock Magazine and stay up to date with the latest news from the world of cryptocurrencies and the digital economy