Binance FDUSD Reserves Remain Secure Despite Temporary Market Volatility
Binance FDUSD reserves have been confirmed as accurate following concerns over a brief de-pegging event. In an April 3 update on its blog, Binance reassured users that First Digital USD’s (FDUSD) reserve attestation for February was thoroughly reviewed. The exchange conducted two separate reviews—one after the February attestation report was published and another recently—to ensure the data’s accuracy.
According to an audit performed by Prescient Assurance, as of March 1, FDUSD had $2.05 billion in reserves. These reserves, held in fixed deposits and U.S. Treasuries, surpass the circulating supply of the stablecoin, ensuring a 1:1 redemption ratio with the U.S. dollar.
The scrutiny over Binance FDUSD reserves heightened after Justin Sun, the founder of Tron, accused FDUSD’s issuer, First Digital Trust (FDT), of insolvency. His remarks triggered a temporary de-pegging event, causing FDUSD to drop by 5% to as low as $0.87. Sun’s comments included calls for regulatory action against FDT and criticism of Hong Kong’s financial system, further fueling market fears.
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The panic selling that ensued led to a significant price dip before FDUSD rebounded. First Digital Trust refuted Sun’s claims, labeling them as misleading and asserting that FDUSD remains fully backed. The company clarified that the issue stemmed from a separate dispute involving TrueUSD, another stablecoin under its management. FDT also accused Sun of orchestrating a smear campaign and is reportedly considering legal action against him.
Given that Binance controls approximately 94% of FDUSD’s circulating supply, concerns have been raised regarding the exchange’s exposure to the stablecoin. Industry experts have warned about the risks associated with relying heavily on a single stablecoin for key trading pairs.
Despite the recent volatility, Binance FDUSD reserves remain stable, with the stablecoin currently trading at $0.99. Binance has pledged to conduct another review after the next attestation report is released in two weeks. The exchange remains committed to monitoring FDUSD’s stability and ensuring that its users’ funds remain secure.
