Binance has given up on the Binance USD. And they have given the users two option who hold the BUSD. First convert that to the FDUSD and another is convert any small balance of any coin to the BNB. Which is kind of regular drive they do on the accounts.
I recently learned about the FDUSD that is being used by the binance inside the trading market and the SPOT wallet. So I thought I should do a bit of investigative journalism behind this move and find out what is going on with the FDUSD.
In near future FDUSD is going to be one of the stablecoins in the list of already existing USD backed stablecoins out there in the market. And there are some business and strategic reasons behind the FDUSD being on the binance, so we talk about it now.
Here are some of the things that you should know about the FDUSD and whether you should hold or not.
Image Credit: iq wiki
FDUSD (First Digital USD) - Who, What and How?
So let's talk about who is the first digital labs. And where they are located and how they do operate. So the first digital labs is one company that is behind the development of the FDUSD. It is hongkong based company and that means there are chinese stakers into this coin.
Binance has lot of chinese stakers and they seem to be investing into this coin too. And this stake into the stablecoin is also backed by the transparent audit holders and the regulators in the united states. And paxum has checked for the validity of this stablecoin too.
That's how it has made it's way to the binance internal market.
Multi-Blockchain Support of FDUSD
Imagine being on one chain and trying to dominate the market. So that is one more way to see that one should have their token in almost every top chain out there. And this is something done by the Tether and the USDC a lot. In fact I have covered that plenty of times.
Same with the FDUSD, as of now they are on the BNB chain and also they are on the Ethereum too. So they are slowly getting into the market and they seem to have slowly targeting one after another exchange to get listed as well. So that is a good direction being taken by the blockchain in that context.
Regulations, Stablecoin and SEC
Paxos had the regulation issues, which made it difficult for the binance to keep the BUSD alive. And as we can see UK and the US regulatory is getting more serious. They are making laws for crime, laws for cryptoand many other small things that are about to happen.
Which means we are going to see the stablecoin game getting more harder. Instead we have to think of the stablecoins which are more reliable and then they are being backed by the govt and the regulators. That is one of the way we can believe in more of such stablecoins in near future.
FDUSD is backed by the regulators and also it is 1:1 properly vetted and audited as well. Which makes it in the same league of the USDC and the Tether too. Let's see how long this race of the stalecoins last and how it ends up in the near future.