By Blockchain News | Created at 2024-11-20 14:41:05 | Updated at 2024-11-20 16:36:57
2 hours ago
Rebeca Moen Nov 20, 2024 14:36
First Digital introduces its stablecoin, FDUSD, as a native token on the Sui blockchain, expanding DeFi options and showcasing institutional confidence in Sui's growing ecosystem.
First Digital has expanded its stablecoin offerings by launching the FDUSD stablecoin as a native token on the Sui blockchain. This development provides decentralized finance (DeFi) users with an additional option, further enhancing the ecosystem's diversity, according to Sui Foundation.
FDUSD Joins Sui's Stablecoin Roster
FDUSD joins a growing list of stablecoins on the Sui platform, which already includes USDC and AUSD. Previously available on Ethereum and BNB Chain, FDUSD's launch on Sui signifies a new chapter for the stablecoin, which is pegged to the US Dollar on a one-to-one basis. This addition highlights the increasing confidence in Sui from institutional financial companies.
Growth and Stability on Sui
The Sui blockchain has demonstrated significant growth, with a 430% increase in total value locked (TVL) and a 692% rise in DeFi volume over the past year. These metrics reflect the platform's expanding influence in the crypto space, drawing attention from various financial entities.
Backing and Security of FDUSD
First Digital Labs supports FDUSD with reserves held in Asian banks and US Treasury debt. An independent auditor's report, as of September 30, 2024, confirmed that First Digital Labs maintained at least $2,817,942,313 in reserves, ensuring the stablecoin's reliability and security.
The Role of Stablecoins in DeFi
Stablecoins like FDUSD are crucial in bridging traditional finance and cryptocurrency. They offer a reliable store of value, appealing to users who value both the security of blockchain technology and the stability of fiat currency. This dual appeal makes them a foundational element of the DeFi ecosystem on Sui.
Image source: Shutterstock
