[ad_1]
The USD stablecoin is now deployed on five major chains, including Ethereum, BNB Chain, Solana and Sui
Dollar-pegged stablecoin FDUSD has launched on the Arbitrum mainnet, the stablecoin’s issuer told The Defiant.
Its deployment on the leading Ethereum Layer 2 blockchain marks the stablecoin’s fifth native blockchain deployment, after Ethereum, BNB Chain, Sui and Solana, according to issuer First Digital Labs.
According to First Digital, FDUSD is fully backed by fiat currency and U.S. Treasuries. In April, Tron founder Justin Sun accused the firm of insolvency. Per an April announcement from top centralized exchange Binance, a third-party audit dated March 1 confirmed that FDUSD held reserves of $2,051,348,188.70 in U.S. Treasuries and overnight fixed deposits, which exceeded the asset’s market cap at that time.
FDUSD is currently the third-largest USD-pegged stablecoin by 24-hour trade volume, with $7.3 billion, and eighth by market capitalization with $1.6 billion, according to CoinGecko. Stablecoin markets in general are led Tether’s USDT, with a whopping $154.2 billion market cap, following by Circle’s USDC with $60.9 billion.
“By launching natively, FDUSD can offer a safer, more seamless user experience while also enabling deeper liquidity across Arbitrum’s DeFi ecosystem,” First Digital said. “This deployment marks a milestone in expanding FDUSD’s cross-chain interoperability and prominence in DeFi.”
The top-10 stablecoin’s issuer is based in Hong Kong and operates under its regulatory framework. It has been expanding aggressively, launching natively on Sui in November and on Solana in January.
“As part of our multi-chain strategy, FDUSD is focused on expanding onto more blockchains to power a highly efficient, interconnected and scalable blockchain economy for stablecoins,” said Vincent Chok, founder and CEO of First Digital, in comments to The Defiant, hinting: “watch this space as we expand onto more blockchains in this coming stablecoin summer.”
Users can access on-chain FDUSD liquidity on Camelot, Arbitrum’s largest decentralized exchange (DEX).
With a total value locked of over $3 billion, Arbitrum is the second-largest L2 on Ethereum, behind Coinbase’s Base. Arbitrum operates as an optimistic rollup, boasting low transaction costs and high scalability.
“FDUSD is positioned as a building block — offering a native, deeply integrated stablecoin experience for the next wave of DeFi innovation on Arbitrum,” continued First Digital’s founder, adding:
“We believe that stablecoin proliferation on high-throughput L2s like Arbitrum is crucial for scaling DeFi to mainstream adoption, unlocking more use cases from micro-payments to institutional-grade financial products.”
Commenting on the significance of the stablecoin’s deployment on Arbitrum, Ryan De Souza, APAC partnerships lead for Arbitrum developer Offchain Labs, said:
“With native deployment on Arbitrum, it’s not only enhancing scalability and reducing costs but also making digital finance more accessible, secure, and aligned with the evolving needs of both institutions and everyday users.”
Back in February, leading stablecoin issuer Tether tapped Arbitrum for its cross-chain stablecoin, USDT0. As of 2023, Circle’s USDC is also natively deployed on the leading Ethereum L2.
As The Defiant reported in April, FDUSD’s issuer, First Digital, was involved in a controversy with Tron founder Justin Sun, who claimed in an April X post that First Digital is “effectively insolvent.” The stablecoin briefly lost its dollar peg by 10% after Sun’s post. First Digital has denied the allegations, pointing to its audits and calling the accusations a “Justin Sun smear campaign.”
[ad_2]
Read More: thedefiant.io