The USD stablecoin is now deployed on 5 main chains, together with Ethereum, BNB Chain, Solana and Sui
Greenback-pegged stablecoin FDUSD has launched on the Arbitrum mainnet, the stablecoin’s issuer instructed The Defiant.
Its deployment on the main Ethereum Layer 2 blockchain marks the stablecoin’s fifth native blockchain deployment, after Ethereum, BNB Chain, Sui and Solana, in response to issuer First Digital Labs.
In response to First Digital, FDUSD is totally backed by fiat forex and U.S. Treasuries. In April, Tron founder Justin Solar accused the agency of insolvency. Per an April announcement from high centralized trade Binance, a third-party audit dated March 1 confirmed that FDUSD held reserves of $2,051,348,188.70 in U.S. Treasuries and in a single day fastened deposits, which exceeded the asset’s market cap at the moment.
FDUSD is at present the third-largest USD-pegged stablecoin by 24-hour commerce quantity, with $7.3 billion, and eighth by market capitalization with $1.6 billion, in response to CoinGecko. Stablecoin markets basically 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 stated. “This deployment marks a milestone in expanding FDUSD’s cross-chain interoperability and prominence in DeFi.”
The highest-10 stablecoin’s issuer is predicated in Hong Kong and operates underneath its regulatory framework. It has been increasing 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,” stated Vincent Chok, founder and CEO of First Digital, in feedback to The Defiant, hinting: “watch this space as we expand onto more blockchains in this coming stablecoin summer.”
Customers can entry on-chain FDUSD liquidity on Camelot, Arbitrum’s largest decentralized trade (DEX).
With a complete worth 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 prices and excessive 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, including:
“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 importance of the stablecoin’s deployment on Arbitrum, Ryan De Souza, APAC partnerships lead for Arbitrum developer Offchain Labs, stated:
“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 misplaced its greenback peg by 10% after Solar’s publish. First Digital has denied the allegations, pointing to its audits and calling the accusations a “Justin Sun smear campaign.”
