Binance Confirms FDUSD Reserve Accuracy Amid market Concerns
Binance has confirmed the accuracy of Frist Digital USD’s (FDUSD) reserve attestation for February. This comes after a brief de-pegging event raised concerns.In an April 3 update, Binance stated it reviewed FDUSD’s reserve data twice to ensure 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.
The update follows accusations from Tron (TRX) founder Justin Sun. He claimed First Digital Trust, FDUSD’s issuer, was insolvent. This caused panic selling, leading FDUSD’s price to drop to $0.87 before recovering.
First Digital Trust refuted Sun’s claims, calling them deceptive. The company linked the issue to a dispute involving TrueUSD (TUSD), another stablecoin it manages. FDT accused Sun of a smear campaign and threatened legal action.
Given Binance’s 94% ownership of FDUSD, the situation has raised concerns about the exchange’s exposure. Analysts warn of the risks of relying on a single stablecoin for key trading pairs.
As of now, FDUSD has stabilized at $0.99. Binance plans to review FDUSD’s stability after the next attestation report in two weeks.
