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Statistics indicate that the first digital usd (FDUSD), a recently introduced fiat-pegged token launched in August 2023, has risen to become the fourth-largest stablecoin based on market capitalization. Currently, FDUSD holds the fourth position in terms of 24-hour global trading volume.
FDUSD Claims Fourth Spot Among Stablecoin Titans
In the realm of U.S. dollar-pegged cryptocurrencies, the stablecoin FDUSD has emerged as a significant player. As of now, FDUSD boasts a circulating supply of 3.15 billion tokens, predominantly distributed across Ethereum and the BNB Chain. Specifically, 3.02 billion tokens are on Ethereum, while 134.7 million tokens are housed on the BNB blockchain network. Since its inception, FDUSD has experienced significant growth in its supply and has recently risen to become the fourth-largest stablecoin, surpassing TUSD’s overall market valuation.
Binance holds a substantial portion of the tokens, with the top wallets on both chains being owned by the exchange platform. On the Ethereum chain, all of the top four wallets are under Binance’s control, collectively holding 97.02% of the entire ERC20-based FDUSD supply. Similarly, on the BNB chain, Binance dominates with the two largest wallets holding 39.2% and 33.14% respectively, along with the third-largest address containing 5.63% of the supply. Despite over 3 billion FDUSD tokens on Ethereum, the number of transfers stands at a mere 4,995.
These statistics suggest that the majority of FDUSD’s activity, particularly on the Ethereum network, occurs off-chain and within exchange market books, primarily through Binance. This trend extends to global trade volume, positioning FDUSD as the fourth-largest crypto asset with the highest trading volume under ETH. Data from both coingecko.com and coinmarketcap.com show that FDUSD recorded approximately $16.7 billion in daily volume between March 7-8, 2024.
According to Cryptocompare metrics, which aggregates data from numerous centralized exchanges, FDUSD has seen more trades with bitcoin (BTC) than tether (USDT) in the past day. FDUSD ranks as the second-largest trading pair with ethereum (ETH) and the second-largest trading pair with solana (SOL) after USDT. Prescient Assurance LLC. provides assurance reports on FDUSD reserves, with the latest report published in January 2024. The assurance data reveals that a portion of FDUSD reserves are held in U.S. Treasuries and the rest in cash reserves.
FDUSD was introduced by First Digital Labs, a subsidiary of First Digital Group, a Hong Kong-based corporate entity. The funds backing FDUSD are stored in financial institutions across three different nations, according to the assurance specifics. The assurance report outlines that Standard and Poor’s has assigned these banks a rating of at least A-2 grade. Regarding the stablecoin’s assessment by bluechip.org, FDUSD has met “the minimum requirements for a passing grade.”
The independent stablecoin rating agency elaborates on FDUSD’s issues by stating, “Although the reserves are held in custody by a Hong-Kong trust, we believe these reserves are not bankruptcy-remote. In the event of bankruptcy of the issuer or its holding company, users’ funds may not be isolated from the liquidation process.”
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