FDUSD Loses Peg to US Dollar

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The value of First Digital USD (FDUSD), a stablecoin backed by Binance, dropped on March 5 sharply to $0.92 before quickly bouncing back to its intended equivalent to the US dollar.

FDUSD was created by First Digital, a trust and custody company based in Hong Kong, in June 2023.

The stablecoin is available on both the Ethereum and BNB Chain networks. Binance added FDUSD to its list of assets in August 2023, offering commission-free trading.

Just a few weeks later, Binance’s CEO Changpeng Zhao raised concerns about Tether (USDT), the largest stablecoin by market capitalization, calling it a “black box” with potential risks.

It was also revealed that Binance had transferred some of its reserves from USD Coin (USDC) to another coin.