Hong Kong-Based First Digital’s $3B Stablecoin Arrives to Sui Network in DeFi Push

According to CEO Vincent Chok’s interview with CoinDesk, First Digital is broadening its scope to enhance the adoption of FDUSD among users in the decentralized finance (DeFi) sector.

A digital currency called FDUSD was introduced in Hong Kong under its rules for digital assets. This currency is linked to the value of U.S. Treasury bills and bank deposits to maintain a price of around $1. In just a year, it has grown to become the fourth largest stablecoin, with a market capitalization of $3.3 billion, following Tether’s USDT, Circle’s USDC, and MakerDAO’s DAI.

In the interview, Chok expressed his excitement about Sui, a rapidly expanding network, which is actively contributing to the Decentralized Finance (DeFi) sector. Impressed by their significant progress within a year, we aim to develop in tandem with Sui as a new stablecoin.

Sui, developed by the team behind Meta’s former Diem crypto project, has experienced a surge in DeFi (Decentralized Finance) activity. The network’s total value locked (TVL), which represents the total worth of assets on a protocol or blockchain, has grown significantly from $100 million six months ago to approximately $700 million as of now, according to DefiLlama’s data.

Sui’s extension welcomes FDUSD as the initial native stablecoin, making it the first of its kind on the Sui platform according to DefiLlama. Currently, Sui accommodates approximately $340 million in USDC and USDT stablecoins. However, moving tokens from other blockchains required bridges, which come with transfer fees and potential risks.

“The integration will significantly influence the Sui community, leading to increased liquidity, broader network functionality, and opening up new opportunities for both developers and users,” according to an email statement from Greg Siourounis, Managing Director of the Sui Foundation’s ecosystem development team.