Sui's first native, non-wrapped stablecoin is coming in the form of FDUSD, a popular US dollar-backed stablecoin currently available on Ethereum and BNB Chain. First Digital Labs, the purveyor of FDUSD, is introducing the token to the broader blockchain industry with its debut on Sui.
First Digital Labs backs FDUSD on a one-to-one basis with the US dollar. It maintains reserves in Asian banks and US Treasury debt to support the token. As of February 29, 2024, 3,292,039,236.91 FDUSD was in circulation, according to an auditors report.
Sui's native token, SUI, used to pay gas fees and stake validators, serves as the fundamental cryptocurrency on the network. Projects and DeFi protocols on the network create their own tokens for various purposes, including commerce within a game world and liquid staking.
Stablecoins such as FDUSD serve as a vital component of Sui's cryptocurrency ecosystem, appealing to users seeking a reliable store of value. They bridge the traditional finance world, with its generally trustworthy notions of value, and cryptocurrency, which offers technical security.
On Sui, FDUSD will offer people a non-volatile cryptocurrency option. First Digital Labs has not set timing for availability as of yet.
Note: This content is for general educational and informational purposes only and should not be construed or relied upon as an endorsement or recommendation to buy, sell, or hold any asset, investment or financial product and does not constitute financial, legal, or tax advice.
