Injective: No Attack Occurred, Partial Validators Temporarily Jailed Due to Accelerated Upgrade
Injective officials announced that community contributors coordinated an accelerated network upgrade yesterday. As the time required for all validators and ecosystem infrastructure to complete the upgrade exceeded expectations, some validators were temporarily jailed, leading to a temporary dip in the network’s staked amount. Several exchanges also temporarily suspended INJ deposits and withdrawals. Injective stressed that its blockchain network and INJ token remained fully secure throughout the process: the underlying protocol and consensus mechanism were not compromised, user and staked funds suffered no losses or risks, and the network continued processing transactions without any downtime. The official noted that the accelerated upgrade was triggered by attacks on a small number of binary options market applications within the Injective ecosystem. The incident only impacted those applications, and did not exploit the Injective blockchain, protocol, native assets, or consensus mechanism. The attack vector has since been contained and repaired. Injective added that its team is deploying enhanced security mechanisms, real-time monitoring systems, and additional protective measures to identify abnormal activities earlier and reduce the risk of similar incidents recurring.
Hyperliquid’s block trading layer Silhouette has announced the mainnet launch of its RFQ (Request for Quote) trading system, with initial support for xStocks, Payward’s tokenized stock framework. According to the announcement, traders can submit quotes for supported xStocks, receive competitive bids from multiple market makers, and final executed trades settle directly on-chain, with support for 24/7 trading and large-sized orders. This model eliminates the need to build separate order books for each tokenized stock; once trading activity reaches a certain threshold, the assets can also be listed on Hyperliquid’s HyperCore market. Data shows that since its launch in June 2025, xStocks has recorded a cumulative trading volume exceeding $40 billion, with over 200,000 holders, of which nearly $20 billion in volume has been settled on-chain. The current global tokenized stock market size is around $2.53 billion, with xStocks boasting a market cap of ~$620 million, ranking third globally. In addition, Payward announced today that it will tokenize the 100 largest companies by market cap listed on the London Stock Exchange. The first batch of London-listed xStocks is expected to launch in the coming weeks, pending regulatory approval.
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US job openings saw a slight uptick in July, with overall labor demand remaining stable.
U.S. job openings rose slightly in July, signaling that overall labor demand has remained stable in recent months. Data released by the U.S. Bureau of Labor Statistics on Tuesday showed that July job openings climbed from June’s downwardly revised 7.18 million to 7.27 million, versus economists’ median estimate of 7.31 million. The report notes the U.S. labor market is still in the "low hiring, low layoffs" pattern that has prevailed for most of the past few years. Amid geopolitical uncertainty and persistent inflation, employers are cautious about expanding their headcount but reluctant to cut staff easily. The increase in job openings was driven mainly by manufacturing, state and local governments (excluding education), healthcare and social assistance sectors. Meanwhile, layoffs hit their lowest level since January this year, while the quits rate — a measure of the share of workers who voluntarily leave their jobs each month — edged down to 1.9%. Source: Jinshi
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Bessent: The Strait of Hormuz will achieve "alternative shipping routes" within two years, and the US will continue to step up sanctions on Iran.
U.S. Treasury Secretary Scott Bessent noted during a fireside chat at the G20 summit that the U.S. energy sector’s “3-3-3” plan targets crude oil equivalent. Since Trump took office, U.S. daily oil production has risen by 1.6 million to 2.2 million barrels, he added, emphasizing that risks must be mitigated. Bessent also said bypassing the Strait of Hormuz will be achievable within two years, at which point the strait will become “worthless waters” as oil will be transported via onshore pipelines instead of through the strait. When discussing the Iran issue, he pointed out that 85% to 90% of Iranian factories have reconstruction capacity, and Iran may hold the world’s third-largest energy resources. Additionally, the U.S. may announce bank sanctions this week and next, having secured strong support from the European Union, European Central Bank, the U.K., the U.A.E., and Bahrain. The U.S. has adopted a zero-tolerance stance toward Iran, aiming to strangle its economic development, and will also focus on Iran-related aircraft leasing firms. Bessent stated: “We are aware of Iran-related accounts in the British Virgin Islands. Funds stolen from the Iranian people can be returned to them, or Iranian funds can be used to assist terrorism victims.” (Jinshi)
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Bitcoin enters 'Rektember': September has historically been a weak month for the cryptocurrency, with interest rate hike risks likely to suppress its August gains.
Bitcoin kicked off September on a weak note, falling below $78,000. Since 2013, September has been Bitcoin’s worst-performing month on average, with an average decline of around 3% and only five monthly gains, earning it the market nickname "Rektember". However, Bitcoin has posted gains in each of the past three Septembers. It rallied roughly 25% in August, its strongest monthly performance since November 2024, and may face short-term consolidation or even correction pressure. The macroeconomic environment is also weighing on assets. After Federal Reserve Chair Waller delivered hawkish signals at the Jackson Hole Economic Symposium, global bond markets sold off, pushing the U.S. 10-year Treasury yield to as high as 4.784%. Markets currently assign a roughly 66% probability of a 25-basis-point rate hike by the Fed on September 16, and are pricing in potential additional hikes this year. Higher interest rates typically tighten financial conditions, boost the U.S. dollar, and weigh on risk assets like Bitcoin. Meanwhile, persistent tensions in the Middle East have lifted oil prices, with WTI crude trading near $88 per barrel, while gold fell more than 2% on Tuesday. Traditional markets also face seasonal headwinds: since 1975, September is the only month with a negative average performance for the S&P 500 index.
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Elon Musk: AI is expected to significantly boost productivity, which could lift the global economy by 20% to 30%.
Elon Musk stated in his speech at the G20 summit that he expects artificial intelligence to significantly boost productivity, noting that AI could lift the global economy by 20% to 30%.
Robinhood has launched crypto transfer services in Europe, enabling customers to move cryptocurrencies in and out of its app. This move highlights the American financial services company’s dedication to expanding its product offerings and strengthening its global presence in the crypto market.
Speculation arose that the retail investing platform is exploring the stablecoin market, but Robinhood has firmly denied this claim.
Robinhood Enables Crypto Transfers in EuropeCustomers in the European Union can now deposit and withdraw over 20 digital currencies, including BTC, ETH, SOL, and USDC, via Robinhood’s platform. They can also self-custody assets instead of storing their holdings with third parties.
With the launch of the service, European customers can receive 1% of the value of tokens deposited on the platform back in the form of the equivalent cryptocurrency they transfer into Robinhood, a limited-time marketing strategy.
This development comes barely a year after Robinhood Crypto forayed into the EU market. The venture allowed customers to buy and sell cryptocurrencies. However, they could not move them away from the platform to another third party or their own self-custodial wallet. The latest development changes that.
Read more: How to Buy and Sell Crypto on Robinhood: A Step-by-Step Guide
Robinhood’s move to bring crypto transfers to Europe acknowledges the region’s potential to become an attractive market for digital currencies. Its general manager and vice president, Johann Kerbrat, cited crypto-friendly regulations adopted in Europe’s 27-member bloc. In his opinion, things could be better once Markets in Crypto-Assets (MiCA) are in full effect.
This regulatory clarity has allowed companies like Circle to obtain an Electronic Money Institution (EMI) license, enabling them to offer dollar- and euro-pegged crypto tokens under the MiCA framework.
Amid this environment, there was speculation that Robinhood was exploring stablecoin launches alongside Revolut, but the retail investing platform has denied these claims. The firm put out the speculation, citing no “immediate plans” to launch its own stablecoin.”
“On our side, we don’t have any imminent plan. It’s always kind of funny in my position to see where people think we’re going to move next,” Kerbrat said in an interview with a news site.
Rumors notwithstanding, Tether’s USDT dominance in the stablecoin market could face significant competition as sector regulation improves in the EU. As BeInCrypto reported in July, Circle’s USDC stablecoin leads regulated stablecoins with a $23 billion volume, effectively challenging reserve-backed stablecoin First Digital USD’s (FDUSD) 14% market share.
USDC’s main market rival in the stablecoin market, Tether’s USDT, is not EMI-licensed. Its CEO, Paolo Ardoino, is still unconvinced by MiCA’s expectation of 60% backing in bank cash.
Also read: What Is Markets in Crypto-Assets (MiCA)? Everything You Need To Know
These developments highlight the potential of the MiCA framework to shift the balance in favor of compliant stablecoins.
The SUI ecosystem continues to capture investor attention this October, setting multiple notable new records.
While the recovery momentum of many altcoins has stalled, SUI has achieved a new all-time high (ATH) this month, reaching $2.16.
SUI Ecosystem Market Cap Exceeds $8 BillionAccording to CoinMarketCap, the SUI ecosystem’s market cap in October reached $8.54 billion. Of that, SUI’s individual market cap is around $5.38 billion, while First Digital USD (FDUSD) accounts for almost $3 billion. The daily trading volume across the ecosystem surpassed $6 billion, with most of it still dominated by SUI and FDUSD.
Read more: A Guide to the 10 Best Sui (SUI) Wallets in 2024
SUI Ecosystem Market Cap and Volume. Source: CoinMarketCap.Other projects within the SUI ecosystem, such as decentralized exchanges (DEXs), meme coins, and lending protocols, hold a smaller share. According to CoinGecko, the market capitalization of meme coins on SUI currently exceeds $296 million, marking a 170% increase from $108 million at the beginning of October.
Typically, investors who buy and hold SUI tend to reinvest in other protocols and meme coins within the ecosystem. This is similar to how the Solana ecosystem surged in popularity last year.
SUI Ranks Among Top 3 Altcoins by Netflow in the Past MonthMore data indicates promising signals for SUI’s continued appeal to investors in the final quarter of the year. Artemis data, which tracks capital flows into and out of various ecosystems, shows that SUI ranks third in altcoin netflow over the past month, behind only Ethereum and Solana.
Netflow by Chain. Source: Artemis.Looking at cross-ecosystem bridge transactions, SUI accounts for over 9% of the capital flow from Ethereum. These figures highlight the growing activity within the SUI network, reflecting the ongoing adoption and demand among users.
SUI Dominance Rises 270%, Reaches New High of 0.27%SUI dominance (SUI.D), which measures SUI’s share of the total market cap, has seen a significant rise. A higher dominance indicates that SUI is becoming a preferred choice among investors.
Read more: Everything You Need to Know About the Sui Blockchain
SUI Dominance. Source: TradingView.In just the past two months, SUI.D has surged 270%, hitting a new high of 0.27%. Although it has now retraced to 0.26%. This comes at a time when most other altcoins are seeing declines in market cap share while Bitcoin dominance remains high at over 56%.
“SUI is moving exactly like SOL before the massive pump,” Investor CryptoGoos predicted.
Through technical analysis, many investors are optimistic that SUI’s price could follow a similar pattern to that of SOL. However, a recent BeInCrypto analysis indicates that SUI may face significant corrections under the pressure of profit-taking from early investors.
This is because the price has increased by nearly 120% in the past 30 days. In such a scenario, investors are bound to book some profit.
Hong Kong-based stablecoin issuer First Digital Trust said Thursday it is expanding its FDUSD token to the Solana network.
First Digital USD (FDUSD), the fourth largest stablecoin by market capitalization issued by Hong Kong-based firm First Digital Trust, is coming to Solana as it seeks new ecosystems after rolling out products on Ethereum and BNB Chain (formerly Binance Smart Chain).
In an Oct. 30 announcement on X, the team behind the stablecoin said the selection was due to Solana’s transactional output, calling it an “ideal solution for real-time payments and settlements.”
The team added that FDUSD’s upcoming integration with Solana is a “part of our broader strategy to build a versatile, resilient stablecoin ecosystem.” However, the stablecoin issuer didn’t explain when exactly it plans to launch FDUSD on Solana.
“With support on Ethereum, BNB Chain, Sui, and soon Solana, FDUSD is more globally accessible and liquid than ever.”
First Digital Trust
FDUSD quickly expands across blockchain networks Unveiled in 2023, FDUSD is issued under Hong Kong’s digital asset rules and backed by U.S. Treasury bills and bank deposits to keep its price anchored to $1. In addition to Ethereum and BNB Chain, FDUSD is also available on Sui Network.
Shortly following its launch, Binance opened trading in Bitcoin (BTC) and Ethereum (ETH) with FDUSD, wooing traders with zero fees. As a result, the stablecoin quickly became the fourth-largest stablecoin behind Tether’s (USDT), Circle’s (USDC) and MakerDAO’s (DAI), amassing more than $2.5 billion market capitalization, as of press time
Key NotesThe FDUSD has grown to a multi-chain stablecoin available of Ethereum, BSC chain, Sui, and now Solana.The Solana network will heavily benefit from enhanced liquidity amid the mainstream adoption of its digital assets and Web3 protocols. First Digital USD (FDUSD), a fast-growing multi-chain stablecoin backed by the US dollar in a ratio of 1:1, has finally launched on Solana network, a top-tier layer one blockchain fueling the mainstream adoption of digital assets and Web3 platforms.
Already, top-tier DeFi protocols on the Solana network have integrated FDUSD to allow their users to seamlessly trade. Some of the top DeFi projects that had already listed FDUSD for trading at the time of this writing include Raydium protocol, Kamino Finance, Meteora, and Phantom Wallet.
According to the First Digital Labs team, the launching of FDUSD on the Solana network was mainly based on several facts. On the top list, the Solana network has grown to a vibrant Web3 ecosystem, with more than $9 billion in total value locked and around $6 billion in stablecoins market cap.
The FDUSD stablecoin will help enrich the Solana protocols with reliable digital US dollars, especially amid heightened crypto volatility. Moreover, the Solana network is home to a fast-growing memecoin ecosystem, catalyzed by the democratization of token creation by pump.fun launchpad.
According to the announcement, FDUSD on the Solana network will be listed on major cryptocurrency exchanges in the near term.
“Soon, FDUSD on Solana will be available for deposits and withdrawals on major centralized exchanges. Users can expect seamless transfers and speedier transactions with lower fees,” the announcement noted.
Market Impact of the FDUSD Launch on Solana Network The launch of FDUSD on the Solana network will significantly add to its rising demand in the Web3 industry. As of this writing, FDUSD had a 24-hour average traded volume of about $6.69 billion and a total market of about $1.8 billion.
The higher daily average trading volume than the market cap suggests a significant demand for the FDUSD Stablecoin in the Web3 space.
Meanwhile, the launch of FDUSD on the Solana network will play a crucial role in the mainstream adoption of SOL and its related DeFi projects. Moreover, SOL coins are used to pay for transaction fees across all its DeFi protocols led by DEXes.
Amid the ongoing mainstream adoption of digital assets and Web3 protocols on the Solana network, the SOL price rallied more than 8 percent in the past 24 hours to trade at about $203 at the time of this writing. The large-cap altcoin, with a fully diluted valuation of about $120 billion and a 24-hour average trading volume of around $4.4 billion, is on the verge of a major bull run after completing a two-month correction.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Let’s talk web3, crypto, Metaverse, NFTs, CeDeFi, meme coins, and Stocks, and focus on multi-chain as the future of blockchain technology. Let us all WIN!
First Digital USD (FDUSD), a multi-blockchain audited stablecoin pegged to the U.S. dollar, enhances its availability on Binance (BNB), the largest crypto exchange by trading volume and user count. Traders are invited to deposit and withdraw FDUSD paying no fees.
Solana's FDUSD listed by Binance with zero-fee promoBinance (BNB), a dominant centralized crypto exchange, shared details of its latest stablecoin listing so far. Solana-based version of First Digital USD (FDUSD), a Hong Kong-regulated USD-pegged stable cryptocurrency, is now available for all Binancians.
Binance (BNB) stressed that the process of SOL-based FDUSD is fully completed: Users can freely deposit and withdraw the stablecoin via the Solana (SOL) blockchain and utilize it in Binance's (BNB) products.
To introduce the novel stablecoin to the Binance (BNB) audience, the platform is running a zero-fee promo campaign for FDUSD. Until April 16, 2025, 11:59 p.m. UTC, all deposit and withdrawal operations are charged with zero platform fees.
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As Binance (BNB) targets regulatory compliance, it recalled that users in EEA are not eligible for the promotion and usage of stablecoins unauthorized under the new MiCA regulatory framework for digital assets.
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As covered by U.Today previously, Binance (BNB) already expanded its stablecoin offering this year. On Jan. 10, spot trading in PHA/USDC, PLN/USDC, STEEM/USDC and USUAL/USDC pairs kicked off.
Tether unveils USDT cross-chain alternative: DetailsDespite increasing regulatory hostility, the competition in the stablecoin segment has gained steam in recent months. Tether, the issuer of the largest-ever stablecoin USDT, announced this week its new development called USDT0, a cross-chain stablecoin issued on Kraken's L2 Ink.
Introducing USDT0.@Tether_to has completely reshaped global economies and in just over a decade has become the single largest stable asset in the world at almost $140B. It fulfilled crypto’s original promise of banking the unbanked and providing critical financial… pic.twitter.com/36oZJd6F3Q
— USDT0 (@USDT0_to) January 16, 2025 USDT0 is set to merge the benefits of LayerZero's Omnichain Fungible Token standard and OP Stack, Optimism's development framework. Simply put, USDT0 streamlines operations with crypto liquidity on multiple blockchains.
Also, Ripple, a U.S. fintech giant, launched its hotly-anticipated stablecoin Ripple USD (RLUSD) on XRP Ledger and Ethereum (ETH) Dec. 17, 2024.
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As of press time, RLUSD capitalization exceeds $74 million in equivalent.
Bank of America (BofA), the second largest bank in the United States, has hinted at plans to roll out its USD-backed stablecoin.
Brian Moynihan, the CEO of BofA, made the disclosure in an interview with David Rubenstein at the Economic Club of Washington D.C. During the interview, Moynihan emphasized that the stablecoin business is imminent and poised to go mainstream soon.
He referred to stablecoins as digital assets backed by fiat currencies, like the U.S. dollar. Notably, Moynihan suggested that these digital assets can function like a money market fund or bank account.
With Moynihan expecting stablecoins to go mainstream, he revealed that the second-largest U.S. bank may introduce a stablecoin, referred to as the BofA token, tied to U.S. dollar deposit accounts. However, he noted that the bank would only launch the digital asset if the U.S. government legalized stablecoins.
Ongoing Efforts to Regulate USD Stablecoins It bears mentioning that the United States government is pushing to pass stablecoin legislation. Last year, Rep. French Hill (R-AR) disclosed that the United States Congress will prioritize crypto legislation, including those relating to stablecoins, in 2025.
Due to its aggressive stance toward crypto, the previous administration sabotaged efforts to pass stablecoin regulation. However, crypto enthusiasts are optimistic that the U.S. will soon welcome favorable legislation for stablecoins.
This speculation is driven by Donald Trump’s executive order for the digital asset markets. The order mandates a presidential committee to establish crypto regulation at the federal level.
Specifically, the order pushes for the sovereignty of the U.S. dollars by promoting the growth and development of dollar-backed stablecoins globally.
BofA Faces Stiff Competition From Established Stablecoin Issuers Should the government establish the necessary regulation, BofA may launch its own dollar-backed stablecoin. However, the bank faces stern competition from established brands like Tether (USDT) and USD Coin (USDC).
Currently, stablecoins USDT and USDC have valuations of $142.02 billion and $56.25 billion, respectively. They account for 86.55% of the $229.06 billion global stablecoin market valuation.
Other dominant USD-backed stablecoins include Ethena USDe (USDe), Dai (DAI), First Digital USD (FDUSD), and PayPal USD (PYUSD). These stablecoins are worth $5.87 billion, $5.36 billion, $2.13 billion, and $703.38 million, respectively.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
Binance moves to restrict non-MiCA compliant stablecoins for EEA users, reveals delisting timeline and conversion options ahead of March deadline.
Cryptocurrency exchange Binance will remove non-MiCA compliant stablecoins like Tether (USDT), First Digital USD (FDUSD), and DAI (DAI) from spot trading in the European Economic Area starting March 31, urging users to switch to MiCA-compliant ones like Circle’s USD Coin (USDC), Eurite (EURI) or fiat like EUR.
In a March 3 press release, Binance said that for now, non-MiCA compliant stablecoins can still be traded in spot pairs until the deadline. However, after March 31, these pairs will be fully delisted.
“Custody of non-MiCA Compliant Stablecoins will continue and you will be able to withdraw or deposit non-MiCA Compliant Stablecoins at any time.”
Binance
The update will also impact margin trading. From March 27, non-compliant margin trading pairs will be removed, and Binance will automatically convert any remaining assets to USDC. Binance urged users to convert their margin assets before the deadline to avoid liquidation risks.
To help users switch to MiCA-compliant stablecoins, Binance will offer zero-fee trading on some pairs and rewards for trading USDC or EURI. The exchange also recommends updating Binance Earn and Loan holdings to compliant stablecoins.
The update is part of Binance’s efforts to comply with Europe’s MiCA framework, which aims to establish clear regulatory guidelines for cryptocurrency markets. In July 2024, analysts at blockchain research firm Kaiko suggested that Europe’s Markets in Crypto-Assets Regulation prompted a rush among issuers to comply, benefiting Circle at the expense of its rivals.
Tether chief executive Paolo Ardoino criticized MiCA, arguing that its requirement for stablecoin issuers to hold at least 60% of reserves in E.U. bank accounts poses financial risks, as deposits exceeding €100,000 are not insured.
A stablecoin called First Digital USD (FDUSD) lost its dollar peg on Wednesday after Tron founder Justin Sun claimed that its issuer, First Digital Trust, is effectively insolvent.
The Hong Kong-based firm is currently “unable to fulfill client fund redemptions," Sun warned in a post on X, formerly known as Twitter, urging “regulators and law enforcement to take swift action to address these issues and prevent further major losses.”
First Digital Trust denied the allegation, saying on X that its stablecoin worth $2.5 billion is backed one-to-one with U.S. Treasuries. The firm described Sun’s rhetoric as part of a “smear campaign,” adding that it will pursue legal action to protect its rights and reputation.
The recent allegations by Justin Sun against First Digital Trust are completely false.
This dispute is with TUSD and not with $FDUSD. First Digital is completely solvent.
Every dollar backing $FDUSD is completely, secure, safe and accounted for with US backed T-Bills. The…
— First Digital (@FirstDigitalHQ) April 2, 2025
FDUSD—which is prominently used by top crypto exchange Binance after it dropped support for BUSD in 2023—plunged as low as $0.95 and was recently changing hands around $0.96, according to the crypto data provider CoinGecko. It had recovered to $0.97 before Sun doubled down.
Sun said on X that First Digital Trust’s insolvency is a “factual statement,” urging the company’s business partners to sever ties “as soon as possible to protect your assets.”
The crypto billionaire recently helped a firm called Techteryx avoid insolvency, CoinDesk reported on Wednesday, citing Hong Kong court documents.
The company, which acquired the stablecoin TrueUSD in 2020, reportedly needed a $456 million bailout from Sun after its reserves were allegedly misappropriated by First Digital Trust.
First Digital Trust (FDT) is, in fact, already insolvent. This is a factual statement, devoid of any emotion. If you have any ties with them, please sever them as soon as possible to protect your assets. As for what consequences its founder, Vincent Chok, will face for his…
— H.E. Justin Sun 🍌 (@justinsuntron) April 2, 2025
First Digital Trust manages TrueUSD’s reserves, and the company diverted cash to a Dubai-based entity instead of an investment vehicle registered in the Cayman Islands, the publication reported, citing court documents prepared by U.S. law firm Cahill Gordon & Reindel.
When Techteryx tried to redeem funds between mid-2022 and early 2023, the company received “little or no funds back” from the Cayman Islands-based fund, and it allegedly defaulted on payments and failed to fulfill redemption requests, according to the court documents.
First Digital Trust has not had the chance to defend itself in court, the firm noted on X.
Despite its small market cap, the disruption centered around FDUSD is “a big deal,“ Coinbase's Head of Product, Conor Grogan, said on X Wednesday. Historically, the stablecoin has been popular among traders on Binance, with the exchange holding 94% of FDUSD in circulation.
Edited by Andrew Hayward
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A prominent stablecoin depegged from the US dollar Wednesday morning after it was alleged that its Hong Kong-based issuer was bankrupt
In a new thread on the social media platform X, crypto billionaire and Tron (TRX) founder Justin Sun urged his followers to “take immediate action” to protect any assets they held in FDUSD, a stablecoin managed by First Digital Trust (FDT).
[adinserter block="1"]
Sun also called for regulators to step in and take action to prevent further losses and save Hong Kong’s reputation as a financial power.
“First Digital Trust (FDT) is effectively insolvent and unable to fulfill client fund redemptions. I strongly recommend that users take immediate action to secure their assets.
There are significant loopholes in both the trust licensing process in Hong Kong and the internal risk management of its financial system.
I urge regulators and law enforcement to take swift action to address these issues and prevent further major losses. Hong Kong’s reputation as a global financial center is at stake, and similar financial fraud incidents must never happen again.”
FDUSD dipped to about $0.949 earlier in the day but has since recovered and is trading for $0.982 at time of writing, a decrease of 1.27% during the last 24 hours.
In response, the FDUSD has denied Sun’s claims and will pursue legal action to defend its reputation.
“The recent allegations by Justin Sun against First Digital Trust are completely false.
This dispute is with TUSD and not with FDUSD. First Digital is completely solvent.
Every dollar backing FDUSD is completely, secure, safe and accounted for with US-backed T-Bills. The exact ISIN numbers of all of the reserves of FDUSD are set out in our attestation report and clearly accounted for.
This is a typical Justin Sun smear campaign to try to attack a competitor to his business. As we told the reporter at CoinDesk, we have not yet had the opportunity to defend ourselves and instead of letting the TUSD matter be dealt with in court, Justin has instead resorted to a coordinated social media effort to try to damage FDUSD as a business competitor.
FDT will pursue legal action to protect its rights and reputation.”
Binance has reaffirmed the accuracy of FDUSD’s reserve attestation for February, following concerns sparked by a brief de-pegging event.
In an Apr. 3 update on the company’s blog, Binance stated it had reviewed First Digital USD’s (FDUSD) reserve data twice, once after the February attestation report was released and again recently to ensure accuracy.
As of Mar. 1, FDUSD had $2.05 billion in reserves, according to the audit, which was carried out by Prescient Assurance. These reserves, which are kept in fixed deposits and U.S. Treasuries, are greater than the amount of stablecoin in circulation and guarantee a 1:1 redemption with USD.
The update comes after Tron (TRX) founder Justin Sun accused the stablecoin’s issuer, First Digital Trust, of being insolvent, causing FDUSD to momentarily lose its peg and drop by 5%. Sun called for regulatory action, criticized Hong Kong’s financial system, and advised investors to withdraw their funds.
His claims caused panic selling, which led to FDUSD’s price dropping as low as $0.87 before recovering. In response, FDT refuted the claims, claiming that Sun’s remarks were deceptive and that FDUSD is fully backed.
The company insisted the issue was unrelated to FDUSD and instead linked to a dispute involving TrueUSD (TUSD), another stablecoin it manages. FDT also accused Sun of launching a smear campaign against its business and has threatened to take legal action against him.
Given that Binance owns roughly 94% of the supply of FDUSD, the situation has sparked worries about the exchange’s exposure. Some industry analysts have pointed out the risks of relying on a single stablecoin for key trading pairs.
As of the time of press, FDUSD seems to have stabilized, trading at $0.99 despite market volatility. Binance intends to carry out another review after the next attestation report is published in two weeks and has reiterated its commitment to keeping an eye on the FDUSD’s stability.
The US House Financial Services Committee voted 32-17 to pass the Stablecoin Transparency and Accountability for a Better Ledger Economy (STABLE) Act of 2025, aimed at stablecoin regulation.
This legislative milestone comes amid growing activity in the stablecoin market. Competition is heating up as major traditional financial institutions prepare to enter the space.
STABLE Act Passes Committee Vote Chairman French Hill and Representative Bryan Steil spearheaded the legislation (H.R. 2392). It seeks to establish a robust framework for stablecoin issuance, mandating 1:1 reserve backing, monthly audits, and AML requirements.
“This legislation is a foundational step toward securing the future of financial payments in the United States and solidifying the dollar’s continued dominance as a world reserve currency,” Representative Steil remarked.
The bill’s passage saw bipartisan support, with six Democrats voting in favor. Notably, this comes shortly after the US Senate Committee on Banking, Housing, and Urban Affairs greenlit the GENIUS Act. The bill passed in a bipartisan 18-6 vote.
“The bills await debate time on the floor and a vote in their respective chambers,” Journalist and Host of Crypto In America, Eleanor Terrett, noted.
According to Terrett, efforts are underway to align the two bills closely over the next few weeks. The aim is to address differences between the bills. Aligning them will make it easier to proceed without creating additional complications.
“If they can get them to be in relatively the same place on their own, it will avoid having to set up a so-called conference committee which is formed so members from both chambers can negotiate to create a final version of the bill everyone agrees on,” she added.
Stablecoin Competition Heats Up, but Are There Signs of a Purge?The drive for legislation occurs alongside rising activity in the stablecoin market. Global players are joining the fray.
For instance, in Japan, Sumitomo Mitsui Banking Corporation (SMBC) and major entities have signed a Memorandum of Understanding (MoU). The MoU initiates joint discussions on the potential use of stablecoins for future commercialization.
“This Agreement will see SMBC, Fireblocks, Ava Labs, and TIS collaborate to develop a framework for stablecoin issuance and circulation, including exploring key technical, regulatory, and market infrastructure requirements both in Japan and further afield. This Joint Discussion will not only focus on pilot projects but will aim to concretely define use cases for ongoing business applications,” the notice read.
In addition, Bank of America’s CEO previously revealed plans to launch a stablecoin once proper regulation is in place. Notably, BeInCrypto reported last month that the Office of the Comptroller of the Currency (OCC) had granted national banks and federal savings associations permission to provide crypto custody and certain stablecoin services.
That’s not all. The state of Wyoming is set to launch its own stablecoin, WYST, in July. Fidelity has also announced similar plans. Moreover, President Trump-backed World Liberty Financial officially launched its USD1 stablecoin in late March. This highlights continued interest in stablecoin adoption across both private and public sectors.
Meanwhile, Ripple announced the integration of its Ripple USD (RLUSD) into Ripple Payments. Changpeng Zhao (CZ), former CEO of Binance, reacted to the development on X.
“Stablecoin war, I mean healthy competition, just getting started,” CZ said.
As competition intensifies, the stablecoin market is also facing growing pains. Despite new entrants gaining traction, some players face heightened scrutiny.
Justin Sun, founder of Tron (TRX), recently accused First Digital Trust of insolvency. Following Sun’s allegations, First Digital USD (FDUSD) temporarily depegged.
The market’s future may hinge on the survival of only the most compliant and resilient stablecoins. This leads to a potential “purge” where weaker players fail to meet the increasing regulatory and market demands.
The team behind First Digital USD (CRYPTO: FDUSD) addressed concerns regarding financial stability Wednesday after the dollar-backed stablecoin briefly depegged following allegations of insolvency by cryptocurrency entrepreneur Justin Sun.
What Happened: First Digital confirmed that it has processed the initial redemptions following the FUD. It also assured that FDUSD is fully backed 1:1 and that their redemption channels are functioning smoothly.
The controversy erupted when Tron (CRYPTO: TRX) founder Justin Sun raised concerns about the company’s solvency and its ability to honor client redemptions.
“I strongly recommend that users take immediate action to secure their assets. There are significant loopholes in both the trust licensing process in Hong Kong and the internal risk management of its financial system,” Sun said.
First Digital strongly rejected the accusation, deeming it a “typical Justin Sun smear campaign” against business competitors. It said it’d pursue legal action to protect its reputation.
See Also: Bitcoin Reeling From Trump’s ‘Liberation Day’ Shock But These Gold-Backed Coins Are Killing It This Year
Following the allegations, FDUSD, currently the fifth-largest stablecoin by market capitalization, fell to $0.87, 13% below the $1 value it is supposed to trade at all times. It regained some of its value as of this writing.
Why It Matters: Launched in 2023, FDUSD is a 1:1 dollar-backed stablecoin issued by Hong Kong-based First Digital Labs, a subsidiary of the First Digital Group.
To ensure their value remains consistent, stablecoins are backed by reserves of the corresponding fiat currency, in this case, the dollar, held in regulated financial institutions. The 1:1 backing means customers can theoretically redeem one unit of the stablecoin for one unit of the underlying fiat currency at any time.
Stablecoin depeggings have been rare. USD Coin (CRYPTO: USDC) lost its dollar peg for a few days in March 2023 after billions in its reserves were stuck with the collapsed Silicon Valley bank.
Price Action: At the time of writing, FDUSD traded at $0.9953, down 0.28% in the last 24 hours, according to data from Benzinga Pro.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
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First Digital Labs has launched FDUSD on Arbitrum, Ethereum’s largest Layer-2 network, marking the stablecoin’s latest expansion and further strengthening its cross-chain presence.
The launch is designed to offer users access to low-cost, high-speed transactions while positioning First Digital USD (FDUSD) as a core stablecoin for decentralized finance, spanning five blockchains and multiple regional markets..
Already deployed on Ethereum, BNB Chain, Sui, and Solana, FDUSD’s expansion to Arbitrum represents a strategic step toward addressing Ethereum’s congestion and throughput challenges. This comes at a time of rising institutional demand for stablecoins that are secure, compliant, and integrated across multiple blockchains.
“Stablecoins will play an increasingly central role in driving global capital market liquidity over the next five years,” said Vincent Chok, CEO of First Digital. “FDUSD’s native integration with Arbitrum eliminates bridging complexities, boosts trade efficiency and strengthens our leadership in the DeFi ecosystem.”
Ryan De Souza, APAC Partnerships Lead at Offchain Labs, which supports Arbitrum, added that FDUSD’s native deployment “is not only enhancing scalability and reducing costs but also making digital finance more accessible, secure, and aligned with the evolving needs of both institutions and everyday users.”
Native integration brings security, scale, and seamless access Unlike bridged tokens that often introduce security vulnerabilities, FDUSD’s native deployment on Arbitrum provides a safer and more seamless experience. It also enables greater liquidity within Arbitrum’s DeFi ecosystem and supports everyday applications like remittances and cross-border payments through near-instant settlements.
Beginning on Friday, users can access FDUSD liquidity through Camelot, one of Arbitrum’s leading DeFi platforms. Institutional clients can also mint FDUSD directly on-chain by opening an account with First Digital, streamlining access to digital dollar liquidity across use cases such as trading, lending, and settlement.
