Crypto exchange Binance has listed the new stablecoin First Digital USD and is offering zero trading fees for select FDUSD pairs for a limited time.
Binance won't charge maker fees for FDUSD/BNB, FDUSD/USDT and FDUSD/BUSD spot trading pairs, as well as any new FDUSD spot and margin trading pairs, it said Wednesday. The exchange also won't charge taker fees on the FDUSD/BUSD and FDUSD/USDT spot and margin trading pairs. (Maker fees are charged to traders who provide liquidity to the order book by placing limit orders, while taker fees are charged to traders who remove liquidity by placing market orders.)
Shortly after listing FDUSD, Binance halted its trading, citing technical issues faced by the stablecoin's liquidity providers. The exchange said it would resume trading at 9:00 am ET today. As for zero fees trading, Binance said they will last until further notice.
Binance's stablecoin controversy
Binance's FDUSD listing comes amid controversy around its recent TrueUSD promotion. Last month, Binance announced zero trading fees for select TUSD pairs. Since then, the stablecoin has risen to the top fifth position in the market.
Reports have alleged that Tron founder Justin Sun might be behind TUSD, but he has denied the allegations. "I am not involved in any ownership or acquisition of TUSD," Sun told The Block last week. "The management and operations of TUSD are entirely under the purview of Techteryx, an independent entity."
Techteryx, an Asia-based consortium, assumed "full management of all offshore operations and services related to TUSD" last week after first purchasing it from crypto firm TrueCoin, LLC (a subsidiary of Archblock, Inc.) in December 2020.
Binance's own BUSD stablecoin is also set to phase away as its issuer Paxos was ordered earlier this year to stop issuing the stablecoin by the New York Department of Financial Services. Binance CEO Changpeng Zhao said, at the time, that the exchange would eventually move away from using BUSD as the primary pair for trading.
The FDUSD stablecoin could see its supply growing with Binance's listing. FDUSD is issued by Hong Kong-based First Digital Labs or FD121 and is part of the larger First Digital Group, which includes First Digital Trust, a qualified custodian and a registered trust company.
FDUSD is currently available on Ethereum and BNB Chain and plans to support more blockchains in the future.
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