Amid stablecoin liquidity crunch, Binance lists little-known newcomer

A recent report from Coingecko found that the stablecoin supply has fallen by $4.6 billion in 2023

article-image

Aleksandr Khmeliov/Shutterstock modified by Blockworks

share

Binance, the world’s largest trading platform by volume, has added a little-known Hong Kong-based stablecoin to its list of trading pairs. This comes amid an industry-wide liquidity crunch that has seen total stablecoin supply fall steadily over the last few months.

On Wednesday, Binance listed the First Digital USD (FDUSD) stablecoin after the asset was first announced in June. While the trading venue announced that the listing was postponed for a number of hours later in the day due to “technical issues,” Coingecko shows that the token has since traded roughly $5.5 million across three trading pairs after the eventual launch.

The Binance listing is notable given both how young and thinly-traded the asset is, as well as for the low profile of its issuing team. Listed on both Ethereum and Binance Smart Chain, FDUSD has been used in under 60 transactions across both chains and is held in just eight wallets. The token’s first transaction was posted just 61 days ago, and accounts for under $20 million in market capitalization. 

The June 1 announcement of the asset coincided with the same day new trading laws went into effect in Hong Kong. A white paper for the stablecoin mentions attestations and backing audits by independent third parties, but does not specify any financial institutions by name. Issuer First Digital Trust has raised over $25 million across multiple rounds. None of the executives listed on the company website mention any previous crypto companies by name in their bios. 

Binance listing FDUSD comes at a time when the overall stablecoin supply is rapidly shrinking. A recent report from Coingecko found that the stablecoin supply has fallen by $4.6 billion in 2023. 

The Binance-branded and Paxos-issued BUSD, which peaked at over a $23 billion market cap in November 2022, has fallen to below $4 billion in circulation after Paxos’ decision to cease minting new tokens following receiving a Wells notice.


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Research Report Templates (2).png

Research

We’re bullish on the PUMP token. We believe Pump.fun's brand strength, existing integrations, product roadmap, and strategic levers justify PUMP's TGE valuation, and expect the token to re-rate meaningfully higher in the months ahead.

article-image

The non-profit’s “Project Open” seeks to let stocks trade directly on Solana

article-image

The acquisition is Pump.fun’s first, and comes just days before its planned ICO

article-image

As Trump’s tariff war reignites, everyone is assuming the dollar will continue its path lower. But the journey might be bumpy

article-image

A valuation model for “blockchain GDP”

article-image

The mini app combines vibe-coding with a hypercasual game feed and is coming to the new Coinbase Wallet

article-image

An improbable tale of the world’s 40th graphics-chip startup