Binance halts trading of FDUSD stablecoin due to ‘technical issues’

The recently introduced stablecoin, First Digital USD (FDUSD), which was scheduled to be listed on Binance on July 26, 2023, at 8:00 am UTC, has been postponed until 2:00 pm UTC on July 26 due to FDUSD pairs’ liquidity providers experiencing technical issues.

In a statement, Binance said it would halt trading for FDUSD on July 26 at 9:45 am UTC and cancel all pending FDUSD orders to ensure its users’ protection. Hong Kong-based First Digital Group announced the launch of the United States dollar-pegged FDUSD on June 1.

On July 26, First Digital Group announced the upcoming debut and listing of its stablecoin on Binance. 

<em>Screenshot of the trading postponement. Source: Binance</em>

According to the statement, The FDUSD is fully backed by cash and cash equivalents, held in segregated accounts within regulated financial institutions. Independent third parties regularly monitor and audit these reserves. The FDUSD is designed to be redeemed at a 1:1 value in U.S. dollars.

Stablecoins are a class of cryptocurrencies that attempt to offer investors price stability either by being backed by specific assets or using algorithms to adjust their supply based on demand.

The announcement states that the FDUSD is not only intended to be a programmable digital asset but also capable of interaction with financial smart contracts, escrow services and insurance without the need for intermediaries. Furthermore, FDUSD’s compatibility with Web3 technologies enables the possibility of creating solutions in the future and further integrating with everyday transactions.

Related: USD-backed stablecoin pilot project launched by Pacific island nation of Palau

In recognition of the launch, Binance is rolling out a promotion offering zero maker fees for all FDUSD trading pairs. Throughout the promotional period, all users can take advantage of zero maker fees on existing FDUSD spot trading pairs and any new FDUSD spot and margin trading pairs.

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