Binance has confirmed the accuracy of FDUSD’s reserve attestation for February following a brief de-pegging event that raised concerns in the market.
In an April 3 update, Binance stated that it had reviewed First Digital USD’s (FDUSD) reserve data twice—once after the February attestation report and again recently—to verify its accuracy.
FDUSD’s Reserves and Stability
According to Prescient Assurance’s audit, FDUSD held $2.05 billion in reserves as of March 1. These reserves—held in fixed deposits and U.S. Treasuries—exceed the stablecoin’s circulating supply, ensuring 1:1 redemption with USD.
The update follows Tron founder Justin Sun’s accusations that FDUSD’s issuer, First Digital Trust (FDT), is insolvent. His claims caused a temporary 5% depeg, with FDUSD dropping to $0.87 before recovering.
Justin Sun vs. First Digital Trust
Sun also called for regulatory intervention and criticized Hong Kong’s financial system, advising investors to withdraw funds.
FDT denied the allegations, stating that FDUSD is fully backed and that the issue stemmed from a dispute involving TrueUSD (TUSD)—another stablecoin it manages. The firm accused Sun of conducting a smear campaign and has threatened legal action.
Concerns Over Binance’s FDUSD Exposure
With Binance controlling 94% of FDUSD’s supply, analysts have raised concerns about the exchange’s over-reliance on a single stablecoin for key trading pairs.
Currently, FDUSD has stabilized at $0.99, despite ongoing market volatility. Binance has pledged to conduct another review after the next attestation report in two weeks to monitor FDUSD’s stability.
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