Binance Confirms FDUSD Reserve Accuracy Amid Market Concerns
Binance has confirmed the accuracy of First Digital USD’s (FDUSD) reserve attestation for February. In an April 3 blog post, Binance stated it reviewed FDUSD’s reserve data twice to ensure its accuracy.
As of march 1, FDUSD had $2.05 billion in reserves, according to an audit by Prescient Assurance. These reserves, held in fixed deposits and U.S. Treasuries, exceed the stablecoin’s circulation, ensuring a 1:1 redemption with USD.
However, Tron (TRX) founder Justin Sun accused First Digital Trust, FDUSD’s issuer, of insolvency. This caused a brief de-pegging event, with FDUSD dropping by 5%. Sun called for regulatory action and advised investors to withdraw their funds.
His claims led to panic selling, causing FDUSD’s price to drop as low as $0.87 before recovering.First Digital Trust refuted the claims, stating that Sun’s remarks were deceptive and that FDUSD is fully backed.
Given Binance’s 94% ownership of FDUSD, the situation has sparked concerns about the exchange’s exposure. Some analysts warn of the risks of relying on a single stablecoin for key trading pairs.
As of now, FDUSD seems to have stabilized, trading at $0.99 despite market volatility. Binance plans to review FDUSD’s stability after the next attestation report is published in two weeks.
