Binance News: FDUSD Depeg Sparks Concerns; First Digital Trust Denies Insolvency Claims

In a recent development in the cryptocurrency space, the stablecoin FDUSD issued by Hong Kong-based First Digital Trust (FDT) lost its peg to the US dollar, sparking concerns among investors. Here’s what you need to know.

First Digital Trust Denies Insolvency Claims by Justin Sun, Defends FDUSD Stability

Hong Kong-based First Digital Trust (FDT) stablecoin FDUSD lost its peg after TRON founder Justin Sun claimed on social media that the company was ’effectively insolvent,’ preventing users from redeeming their FDUSD assets. Binance holds 94% of the FDUSD supply, raising concerns after the depeg incident. However, First Digital Trust defends FDUSD’s stability, stating that it is fully backed by US Treasury bills.

Ripple Expands RLUSD Adoption for Faster, Low-Cost Payments

Ripple has officially integrated its stablecoin, Ripple USD (RLUSD), into Ripple Payments, enhancing its cross-border payment network. This move makes transactions faster and more efficient, providing near-instant settlements and lowering costs for companies. RLUSD, intended specifically for financial companies, now offers enterprise-grade utility. The stablecoin is also available on Kraken, expanding its global accessibility. With a market capitalization nearing $250 million, RLUSD shows strong adoption in the financial sector.