First Digital Trust, a Hong Kong-based stablecoins issuer, announced on Wednesday its plans to extend the availability of its $3 billion dollar-pegged FDUSD token to the Sui (SUI) blockchain. This expansion marks a strategic move by First Digital Trust to enhance the utility and accessibility of FDUSD among decentralized finance (DeFi) users, as stated by CEO Vincent Chok in an interview with CoinDesk.

FDUSD, compliant with Hong Kong's digital asset regulations, is backed by U.S. Treasury bills and bank deposits to maintain its value at $1. Since its launch last year, FDUSD has rapidly ascended to become the fourth-largest stablecoin, trailing behind Tether's USDT, Circle's USDC, and MakerDAO's DAI, accumulating a market capitalization of $3.3 billion.

The token's recent success can be attributed in part to Binance's trading promotion, which gained traction following the shutdown of the Paxos-issued Binance USD stablecoin by New York state regulators. With FDUSD's trading volume surpassing $10 billion over the past 24 hours, predominantly driven by bitcoin (BTC), ether (ETH), and USDT spot trading pairs on Binance, according to CoinGecko data.

In an interview, Chok emphasized the promising growth trajectory of the Sui network, highlighting its supportive stance toward the DeFi ecosystem. Sui, developed by the team formerly behind Meta's Diem crypto project, has experienced a surge in DeFi activity, with its total value locked (TVL) surging from $100 million to around $700 million within six months, according to DefiLlama data.

The integration of FDUSD with the Sui network not only signifies a milestone as the first top stablecoin natively issued on Sui but also eliminates the need for users to utilize bridges to transfer tokens from other blockchain rails, which previously incurred fees and risks. Greg Siourounis, managing director of ecosystem development organization Sui Foundation, expressed optimism about the integration's potential impact, anticipating enhanced liquidity, expanded network utility, and new opportunities for builders and users alike.