- Binance announced the listing of FDUSD and immediately suspended support for the asset. The exchange attributed it to a technical glitch.
- The issuer of the stablecoin is Hong Kong-based First Digital Group. Custodial services are provided by a division of the organization.
- The asset’s reserves, the company states, are regularly audited by independent auditors.
On Wednesday, July 26, 2023, cryptocurrency exchange Binance announced the listing of the FDUSD stablecoin, as well as zero fees on certain currency pairs. But just two hours after the start of trading, the platform suspended support for the asset.
The company attributed its decision to a technical glitch on the side of liquidity providers. Trading in BNB/FDUSD, FDUSD/BUSD and FDUSD/USDT pairs is scheduled to resume on July 26 at 17:00 (Kiev time).
We would like to remind you that Hong Kong-based First Digital Group issued a dollar-backed stablecoin in early June. A key feature of the asset is that its reserve is held in segregated bank accounts in Asia.
In theory, this provides FDUSD with the transparency it needs. The issuing company as well as contractors do not have access to collateral, so the stablecoin is more reliable than peers in the long run, First Digital Group said.
FDUSD is not only used for mutual payments. The asset can interact with smart contracts to perform various functions, such as escrow.
The company ignored a media request for comment. The exact reason for the suspension of trading is not yet known.