Crypto news: First Digital Labs has announced that they have chosen Sui as the first blockchain for the expansion of the FDUSD stablecoin.

In this way Sui becomes the first blockchain on which FDUSD expands from its initial launch on Ethereum and BNB, and the Sui ecosystem is equipped with its own native stablecoin. 

Crypto news: the stablecoin FDUSD is natively added to the Sui blockchain

FDUSD, or First Digital USD, is the fourth largest stablecoin in the world by market capitalization, behind USDT, USDC, and DAI. However, DAI is an algorithmic stablecoin, so among those collateralized in USD, FDUSD is the third largest.

First Digital USD was launched less than a year ago, in August 2023, and has already accumulated a market capitalization of over 3 billion dollars. Moreover, in just the last week, it recorded the fifth largest trading volume in the entire crypto sector, with almost 10 billion dollars of average daily volume.

At the beginning it had a market capitalization of about 250 million dollars, but already three months later it had doubled.

In December it had already risen above one billion dollars, and just over a month later, in January 2024, it had also risen above two billion. 

The three billion dollars arrived in February, although it then dropped by 24% before recovering at the beginning of April. 

It should be noted that USDT has a market capitalization of over 100 billion dollars, while USDC is almost ten times more than FDUSD. DAI, on the other hand, reached its historical peak in February two years ago, at almost 10 billion dollars, but now its market capitalization has more than halved since then. 

FD121 Limited, which issues and manages FDUSD, is a subsidiary of First Digital Group based in Hong Kong. 

The USD reserves of FDUSD are held in separate accounts at First Digital Trust, a trust company registered under the law of Hong Kong.

The reserves are held in cash or highly liquid assets, and First Digital publishes a monthly attestation report of the reserves verified by independent companies.

The FDUSD stablecoin is added to its crypto ecosystem

Sui is a crypto project launched on the markets just over a year ago. 

This is a blockchain and smart contract platform designed to revolutionize the ownership of digital assets, offering speed, privacy, security, and scalability.

Its innovative model is focused on objects and based on the Move programming language, to facilitate parallel execution. This should allow for applications and composability not possible on other blockchains.

In total it already has 9.5 million active users.

In about 13 months it has already attracted $650 million in TVL in the DeFi sector, entering the top 12 blockchains for weekly trading volume on DEX.

It is enough to say that for TVL it has already surpassed Cronos and Cardano, existing blockchains that have been around for several years. 

Instead for volumes it has entered the top 7, surpassing even layer-2 solutions like Polygon and Optimism. 

The fact that FDUSD becomes a native stablecoin on this network will probably help the expansion of both projects, also because the new stablecoin adds liquidity to the network, facilitating smoother transactions and improving market efficiency.

Now Sui users can take advantage of FDUSD for easier access to yield farming, loans, and staking.

The cryptocurrency SUI

The Sui network also has its own native cryptocurrency of the same name. 

It was launched through the Binance Launchpool, and when it landed on the crypto markets it had a price of about $1.4.

However, during 2023 its price dropped below 0.4$, but with the recovery of the crypto market at the end of the year it recorded a good rebound that brought it back close to the initial price, in January of this year. 

During 2024, it reached its all-time high above $2.1, but then dropped in the last few weeks to $1.5, a figure in line with last year’s launch price. 

The comment

The CEO of the Sui Foundation, Greg Siourounis, has declared: 

“First Digital’s decision to implement FDUSD, a rapidly growing and rigorously secure stablecoin, on Sui, underscores the meteoric rise of Sui’s DeFi ecosystem. This integration will have a profound impact on the Sui community, fueling increased liquidity, expanding the network’s utility, and unlocking new possibilities for builders and users. The implementation of FDUSD on Sui is a win-win for both ecosystems and could not come at a more exciting time as the inaugural Sui Basecamp conference kicks off with hundreds of builders and community members in the same room.”