Moving away from BUSD, Binance has started sending waves into the industry with its new stablecoin deal. The new stablecoin, which has just debuted, has surpassed all milestones in value in a short time.
The altcoin market is preparing for a new Binance-backed stablecoin
After BUSD, Binance started working with Hong Kong-based trust company First Digital USD (FDUSD). The new stablecoin is up 51% in the last 30 days, approaching a market cap of $394 million. With this rise, FDUSD rose to eleventh place among dollar-based stablecoins, according to CoinGecko data.
Hong Kong-based First Digital Group launched FDUSD in June this year. Immediately after its launch, Stablecoin was listed on Binance, the world’s largest centralized exchange. Binance’s support played a significant role in the adoption of FDUSD. The leading exchange listed FDUSD on July 26. Meanwhile, it removed transaction fees for conversions made with other stablecoins, USDT and TUSD.
cryptokoin.com As we reported, Binance decided to end its support for BUSD, which is widely used on its platform. He announced that he would prefer FDUSD instead. Binance will stop using BUSD in investment products such as “Auto Invest” starting September 15. Also, it will automatically prefer FDUSD. Meanwhile, Binance is offering a 6 percent annual return on FDUSD deposits through its Simple Earn product during a two-week promotional period that runs until September 15.
FDUSD’s rise is particularly supported by Binance. Therefore, its adoption in the crypto and DeFi sectors is still limited. Data from Nansen shows that most of the FDUSD assets are concentrated on the Binance platform. According to the report, there are almost no assets in the DeFi space. Nansen analyst Martin Lee said, “FDUSD is mostly on Binance for now. “It doesn’t have a very limited presence in DeFi or any other Blockchain application,” he says, noting that FDUSD is not in a really exciting phase yet.
FDUSD opens to new trading pairs
Later, Binance announced that it had added support for First Digital USD (FDUSD) stablecoin trading pairs. This move aims to make trading popular cryptocurrencies even easier. FDUSD is on track to become a crypto hub expected by June 2023. Additionally, FDUSD acts as a stablecoin pegged to the US dollar and there are no transaction fees on Binance.
Binance opened FDUSD trading pairs to user transactions on its platform starting September 7, 2023. These pairs include DOGE/FDUSD, SOL/FDUSD, TOMO/TRY, UNFI/TRY and XRP/FDUSD. Users will be able to continue trading with zero maker fees on the newly added FDUSD trading pairs. This will allow users to trade at lower costs.
Considering the growth potential of FDUSD, this move by Binance makes a lot of sense. FDUSD currently has a market value of $382 million. On the other hand, Tether still has growth potential compared to USDt (USDT)’s market cap of $83 billion.
