First Digital Trust (FDUSD), a Hong Kong-based stablecoin issuer, announced on Wednesday that it has expanded its $3 billion FDUSD token to the Sui (SUI) blockchain. This move follows the launch of the FDUSD token on Ethereum (ETH) and BNB Chain (BNB).
This expansion is part of First Digital's effort to increase FDUSD usage among decentralized finance (DeFi) users. “Sui is a promising network and very supportive of the DeFi space,” First Digital Trust CEO Vincent Chok said in an interview.
“Their growth within a year is also incredible, so we want to grow together as a new stablecoin.”
Issued under Hong Kong's digital asset rules and backed by US Treasury bills and bank deposits to peg its price to $1, FDUSD has quickly become the fourth-largest cryptocurrency behind Tether's USDT, Circle's USDC and MakerDAO's DAI. It became a stablecoin. It has achieved a market cap of $3.3 billion since its launch last year.
The token benefited greatly from crypto exchange giant Binance's trading promotion after the Paxos-issued Binance USD stablecoin was shut down by New York state regulators.
Created by the developer team that managed Meta's closed Diem crypto project, Sui has seen rapid growth in DeFi activities recently. The network's total value locked (TVL) has increased to nearly $700 million from $100 million six months ago.
The expansion to Sui also makes FDUSD the first top-tier stablecoin issued locally on the Sui network.
*This is not investment advice.