FDUSD: Binance’s New Stablecoin Backed by U.S. Dollars Faces Initial Challenges
Amidst a loss exceeding $3 billion in the stablecoin market economy over a 40-day period, several new stablecoin ventures are emerging.
Binance, the leading cryptocurrency exchange globally, recently announced three new trading pairs for its stablecoin, first digital USD (FDUSD), in a blog post. However, liquidity providers temporarily halted FDUSD listings due to “technical issues.”
FDUSD, developed by First Digital Labs, claims to maintain a 1:1 backing with U.S. dollars. The company’s website, managed by FD121 Limited, reveals its Hong Kong-based headquarters as the custodian and registered trust company. The stablecoin is supported by “high-quality reserves—cash and cash equivalents.” Etherscan data indicates a total supply of 1,114,126 FDUSD tokens, with a significant portion held in the wallet labeled “Binance 14.” As of Wednesday, there have been 23 transfers of FDUSD.
Additionally, First Digital Labs’ website features an attestation report by Prescient Assurance LLC, confirming its capacity to hold “U.S. dollars, U.S. Treasury backed bills, and overnight reverse repurchase agreements.”
Clever Robot News Desk 28th July 2023
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