- FDUSD, a stablecoin issued by Hong Kong-based First Digital Labs, was listed on the Binance exchange earlier this week.
- The zero-fee trading program might have contributed to the soaring volume of the coin.
- Binance is looking to promote other stablecoins due to the phasing-out stage of Binance USD [BUSD].
Introduction of FDUSD
First Digital USD [FDUSD] made an impressive start after getting listed on the Binance exchange earlier this week. According to digital assets data provider Kaiko, FDUSD traded at a premium to world’s largest stablecoin, Tether [USDT], briefly on 28 July, reflecting greater demand for the newly-listed asset. The USD-backed stablecoin started with a bang, recording 5 million in hourly trade volumes on the day of the listing. However, as indicated above, volumes have considerably cooled off since then. Consequently, FDUSD’s peg also stabilized at $1.00 at the time of writing, per data from CoinMarketCap.
Zero-Fee Promotion Effect
FDUSD is a 1:1 USD-backed stablecoin issued by Hong Kong-based First Digital Labs. The coin was listed as part of Binance’s now popular zero fee trading program with all spot trading pairs, including FDUSD/USDT, becoming exempt from maker and taker fees. The exchange fee waive-offs might have contributed to the soaring volume of the coin as highlighted earlier. It should be noted that Binance employed the same promotional strategy to promote another stablecoin, TrueUSD [TUSD]. TUSD’s market cap has more than tripled on a year-to-date (YTD) basis, as per Glassnode.
Binance Looks Beyond BUSD
Binance’s aggressive backing of newer stablecoins should be seen in the light of phasing out stage of Binance USD [BUSD], which once vied for its crown with Tether. Its downfall commenced after a New York based regulator instructed them to halt minting new tokens. Since then it has attempted to distance itself from BUSD and is looking to promote other stablecoins like FDUDS and TrueUSC etcetera .