According to data from Coingecko, Hong Kong-based stablecoin FDUSD’s market capitalization surged by 51% in the past 30 days, reaching over $393M.
The stablecoin, which pegs its value to the US dollar (currently slightly de-pegged at $0.999), gained momentum when it was first listed on Binance, the world’s largest crypto exchange by daily trading volumes.
In August, Binance announced the end of trade pairs connected to its native stablecoin BUSD. The announcement came after BUSD token issuer Paxos announced it “will cease issuance of new BUSD tokens as directed by and working in close coordination with the New York Department of Financial Services (NYDFS).”
In parallel to Binance’s abandonment of BUSD, the exchange started urging users to convert their BUSD tokens to FDUSD, charging no conversion fees.
The stablecoin has been a major hit since its launch. According to its official Twitter account, in its first month, the token:
FDUSD was first listed on Binance in July, when the exchange first announced “Binance will list the new stablecoin First Digital USD (FDUSD) and open trading for new spot trading pairs.”
The exchange also added “Binance will also be adding FDUSD to the zero trading fee promotion for USD stablecoin pairs. During the promotion period, users will enjoy zero maker and taker fees on the FDUSD/BUSD and FDUSD/USDT spot and margin trading pairs.”
And, recently, Binance announced the creation of DOGE/FDUSD, SOL/FDUSD, and XRP/FDUSD trade pairs, further boosting the stablecoin’s momentum.
The exchange also announced: “Users will enjoy zero maker fees on FDUSD trading pairs until further notice.”
The token has garnered impeccable success by being listed on the world’s biggest exchange, leading to a skyrocketing market capitalization. Nansen, a blockchain analytics platform, even reports that the majority of FDUSD holders and users are on Binance.
However, FDUSD has yet to be listed on other major exchanges, such as Coinbase, the biggest US-based crypto exchange.
In a conversation about the company’s plans for its stablecoin’s future, Karen Tang, Strategic Communications & Partnerships executive at First Digital, said: “We are looking to grow user adoption across the entire ecosystem but partnering with centralised exchanges, decentralised exchanges and DeFi protocols so we can also build liquidity pools for FDUSD. We are looking to list it on other chains aside from ETH and BSC.”
Binance states that the First Digital USD (FDUSD) “now ranks as the eleventh largest dollar-based stablecoin.”
It is clear to see how partnerships with centralized and decentralized exchanges could raise the potential of the growing stablecoin, potentially placing head-to-head with the likes of Circle’s USDC and Tether USDT in the future.